10-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

___________________________________________

FORM 10-K

(Mark One)

☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2022

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                      to                     

Commission File Number: 000-55435

SILA REALTY TRUST, INC.

(Exact name of registrant as specified in its charter)

Maryland	46-1854011
(State or Other Jurisdiction of Incorporation or Organization)	(I.R.S. Employer Identification No.)
1001 Water Street, Suite 800 Tampa, FL 33602	(813) 287-0101
(Address of Principal Executive Offices; Zip Code)	(Registrant’s Telephone Number, Including Area Code)

Securities registered pursuant to Section 12(b) of the Act: None

Title of each class	Trading Symbol	Name of each exchange on which registered
N/A	N/A	N/A

Securities registered pursuant to Section 12(g) of the Act:

Common stock, par value $0.01 per share

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.  Yes  ☐   No ☒

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.  Yes  ☐    No ☒

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☒    No  ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ☒    No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☐

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐1

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant’s executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐1

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).     Yes  ☐    No  ☒

There is no established market for the Registrant’s shares of common stock.

As of June 30, 2022, the last business day of the Registrant's most recently completed second fiscal quarter, there were approximately 167,794,000 shares of Class A common stock, 16,589,000 shares of Class I common stock, 40,646,000 shares of Class T common stock and 0 shares of Class T2 common stock held by non-affiliates, for an aggregate market value of approximately $1,375,910,800, $136,029,800, $333,297,200 and $0, respectively, assuming a market value of $8.20 per share of our Class A common stock, Class I common stock, Class T common stock and Class T2 common stock, based on the Registrant's estimated per share net asset value as of June 30, 2022, of the Registrant's common stock established by the Registrant's board of directors at that time.

As of March 10, 2023, there were approximately 168,631,000 shares of Class A common stock, 16,826,000 shares of Class I common stock, 41,223,000 shares of Class T common stock and 0 shares of Class T2 common stock of Sila Realty Trust, Inc. outstanding.

Documents Incorporated by Reference

Portions of Registrant’s proxy statement for the 2023 annual stockholders meeting, to be filed with the Securities and Exchange Commission within 120 days after the end of the Registrant’s fiscal year ended December 31, 2022, are incorporated by reference in Part III. Items 10, 11, 12, 13 and 14.

(1)Pursuant to SEC guidance, the blank checkbox is included on this cover page but no disclosure with respect to this checkbox shall be made until the adoption and effectiveness of related stock exchange listing standards.

SILA REALTY TRUST, INC.

(A Maryland Corporation)

TABLE OF CONTENTS

		Page
	PART I
Item 1.	Business	2
Item 1A.	Risk Factors	9
Item 1B.	Unresolved Staff Comments	19
Item 2.	Properties	19
Item 3.	Legal Proceedings	23
Item 4.	Mine Safety Disclosures	23
	PART II
Item 5.	Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	23
Item 6.	[Reserved]	27
Item 7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	28
Item 7A.	Quantitative and Qualitative Disclosures About Market Risk	38
Item 8.	Financial Statements and Supplementary Data	39
Item 9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	39
Item 9A.	Controls and Procedures	39
Item 9B.	Other Information	41
Item 9C.	Disclosure Regarding Foreign Jurisdictions that Prevent Inspections	41
	PART III
Item 10.	Directors, Executive Officers and Corporate Governance	42
Item 11.	Executive Compensation	42
Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	42
Item 13.	Certain Relationships and Related Transactions, and Director Independence	42
Item 14.	Principal Accounting Fees and Services	42
	PART IV
Item 15.	Exhibits and Financial Statement Schedules	43
Item 16.	Form 10-K Summary
SIGNATURES

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

Certain statements contained in this Annual Report on Form 10-K of Sila Realty Trust, Inc., other than historical facts, may be considered forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act. We intend for all such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Securities Act and the Exchange Act, as applicable by law. Such statements include, in particular, statements about our plans, strategies, goals, objectives, initiatives, financial position, prospects, competition, future transactions, acquisitions and partnerships, availability of funds, payment of distributions, share repurchases, capital and other significant expenditures, and liquidity, and are subject to certain risks and uncertainties, as well as known and unknown risks, which could cause actual results to differ materially from those projected or anticipated. Therefore, such statements are not intended to be a guarantee of our performance in future periods. Such forward-looking statements can generally be identified by our use of forward-looking terminology such as “may,” “will,” “would,” “could,” “should,” “expect,” “intend,” “anticipate,” “estimate,” “believe,” “continue,” or other similar words. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date this Annual Report on Form 10-K is filed with the U.S. Securities and Exchange Commission, or SEC. We make no representation or warranty (express or implied) about the accuracy of any such forward-looking statements contained in this Annual Report on Form 10-K, and we do not undertake to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

Forward-looking statements that were true at the time made may ultimately prove to be incorrect or false. We caution investors not to place undue reliance on forward-looking statements, which reflect our management’s view only as of the date of this Annual Report on Form 10-K. We undertake no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results. The forward-looking statements should be read in light of the risk factors identified in the Item 1A. Risk Factors section of this Annual Report on Form 10-K.

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PART I.

Item 1. Business.

General Description of Business and Operations

Sila Realty Trust, Inc. is a Maryland corporation that was formed on January 11, 2013, headquartered in Tampa, Florida, that has elected, and currently qualifies, to be taxed as a real estate investment trust, or a REIT, under the Internal Revenue Code of 1986, as amended, or the Code, for federal income tax purposes. Substantially all of Sila Realty Trust, Inc.'s business is conducted through Sila Realty Operating Partnership, LP, a Delaware limited partnership, or the Operating Partnership. Sila Realty Trust, Inc. is the sole general partner of the Operating Partnership and directly owns 100% of the Operating Partnership. Except as the context otherwise requires, “we,” “our,” “us,” and the “Company” refer to Sila Realty Trust, Inc., our Operating Partnership and all wholly-owned subsidiaries.

We invest in high-quality properties leased to long-term tenants. We are primarily focused on investing in healthcare assets across the continuum of care, with emphasis on lower cost patient settings, which, we believe, typically generate predictable, durable and growing income streams. We may also make other real estate-related investments, which may include equity or debt interests in other real estate entities.

We formerly invested in data center properties. During the second quarter of 2021, our board of directors, or the Board, made a determination to sell our data center properties. On May 19, 2021, we and certain of our wholly-owned subsidiaries entered into a purchase and sale agreement, or the PSA, for the sale of up to 29 data center properties owned by us, which constituted the entirety of our data center segment, or the Data Center Sale. On July 22, 2021, we completed the sale of all 29 of the data center properties for an aggregate sale price of $1,320,000,000, and generated net proceeds of approximately $1,295,367,000. Concurrently, the Board declared a special cash distribution of $1.75 per share of Class A, Class I, Class T and Class T2 shares of common stock. The special cash distribution was funded with the proceeds from the sale of the data center properties. The special cash distribution was paid on July 30, 2021 to stockholders of record at the close of business on July 26, 2021, in the aggregate amount of approximately $392,685,000. The decision of the Board to sell the data center properties, as well as the execution of the PSA, represented a strategic shift that had a major effect on our results and operations for the periods presented. As of December 31, 2021 and subsequent, we had no assets or liabilities related to the data center segment. The operations of the data center segment have been classified as income from discontinued operations on the consolidated statements of comprehensive income for the years ended December 31, 2021 and 2020.

Prior to September 30, 2020, our former advisor was responsible for managing our affairs on a day-to-day basis and for identifying and making investments on our behalf pursuant to an advisory agreement among us, the Operating Partnership and our former advisor. On July 28, 2020, we and the Operating Partnership entered into a Membership Interest Purchase Agreement, or the Purchase Agreement, to provide for the internalization of the external management functions previously performed for us and the Operating Partnership by our former advisor and its affiliates, or the Internalization Transaction. On September 30, 2020, we closed the Internalization Transaction. Effective September 30, 2020, as a result of the Internalization Transaction, our former advisor is no longer affiliated with us. Upon completion of the Internalization Transaction, individuals who were previously employed by an affiliate of our former advisor became employees of us and the functions previously performed by our former advisor were internalized by us. As an internally managed company, we no longer pay our former advisor and its affiliates any fees or expense reimbursements arising from the advisory agreement.

We raised the equity capital for our real estate investments through two public offerings, or our Offerings, from May 2014 through November 2018, and we have offered shares pursuant to our distribution reinvestment plan, or the DRIP, pursuant to two Registration Statements on Form S-3, together the DRIP Offerings and each a DRIP Offering, since November 2017. As of December 31, 2022, we had accepted investors’ subscriptions for and issued approximately 157,508,000 shares of Class A, Class I, Class T and Class T2 common stock in our Offerings, resulting in receipt of gross proceeds of approximately $1,520,086,000, before share repurchases of $135,701,000, selling commissions and dealer manager fees of approximately $96,734,000 and other offering costs of approximately $27,631,000.

As of December 31, 2022, we owned 132 real estate healthcare properties, comprised of approximately 5,535,000 rentable square feet of single-tenant and multi-tenant commercial spaces, and two undeveloped land parcels. As of December 31, 2022, the rentable space of these real estate healthcare properties was 99.5% leased.

We have historically established, and intend to continue to establish, an estimated per share net asset value, or Estimated Per Share NAV, on at least an annual basis. Each Estimated Per Share NAV was determined by the Board, after consultation with an independent third-party valuation firm. The Estimated Per Share NAV is not subject to audit by our independent registered public accounting firm. The Estimated Per Share NAV was calculated for purposes of assisting broker-dealers participating in public offerings in meeting their customer account statement reporting obligations under the National

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Association of Securities Dealers Conduct Rule 2340. The following table outlines the established Estimated Per Share NAV as determined by the Board for the last three years as of each valuation date presented below:

Valuation Date	Effective Date	Estimated Per Share NAV
October 31, 2019	December 18, 2019	$8.65
September 30, 2020	December 8, 2020	$8.69
May 31, 2021	July 26, 2021	$9.95	(1)
May 31, 2021	July 26, 2021	$8.20	(1)
June 30, 2022	August 25, 2022	$8.22

(1)On July 22, 2021, we announced the Estimated Per Share NAV that the Board, at the recommendation of our audit committee, or the Audit Committee, approved on July 20, 2021, which was calculated as of May 31, 2021, of $9.95. Upon the declaration of a special cash distribution of $1.75 per share to stockholders of record on July 26, 2021, the new Estimated Per Share NAV was $8.20.

Key Developments During 2022 and Subsequent

•During the year ended December 31, 2022, we purchased seven operating healthcare properties, in five separate transactions, comprising approximately 244,000 rentable square feet for an aggregate purchase price of approximately $157,194,000. In addition, we placed one operating healthcare property into service.

•During the year ended December 31, 2022, we sold one land parcel that formerly contained a healthcare property for an aggregate sale price of $24,000,000 and generated net proceeds of $22,701,000.

•During the year ended December 31, 2022, we, the Operating Partnership and certain of our subsidiaries, entered into a senior unsecured revolving credit agreement, or the Revolving Credit Agreement, with Truist Bank, as Administrative Agent for the lenders, for aggregate commitments available of up to $500,000,000, which may be increased, subject to lender approval, through incremental term loans and/or revolving loan commitments in an aggregate amount not to exceed $1,000,000,000. The maturity date for the Revolving Credit Agreement is February 15, 2026, which, at our election, may be extended for a period of six-months on no more than two occasions, subject to certain conditions, including the payment of an extension fee. Simultaneously with the Revolving Credit Agreement’s execution, on February 15, 2022, we, the Operating Partnership, and certain of our subsidiaries, entered into a senior unsecured term loan agreement, or the 2024 Term Loan Agreement, with Truist Bank, as Administrative Agent for the lenders. The 2024 Term Loan Agreement, with aggregate commitments of up to $300,000,000, may be increased, subject to lender approval, to an aggregate amount not to exceed $600,000,000. In addition, we, the Operating Partnership and certain of our subsidiaries, entered into a new senior unsecured term loan agreement, or the 2028 Term Loan Agreement, with Truist Bank, as Administrative Agent for the lenders, with aggregate commitments of up to $275,000,000. The Revolving Credit Agreement was entered into to replace our prior revolving line of credit, which had a maturity date of April 27, 2022, with the option to extend for one twelve-month period. We did not exercise the option to extend. Upon closing of the Revolving Credit Agreement, we extinguished all commitments associated with the prior revolving line of credit. The 2024 Term Loan Agreement was entered into to replace our prior term loan, which was paid off in its entirety upon closing of the Revolving Credit Agreement and the 2024 Term Loan Agreement. We refer to the 2028 Term Loan Agreement, the Revolving Credit Agreement and the 2024 Term Loan Agreement, collectively, as the “Unsecured Credit Facility,” which has aggregate commitments available of $1,075,000,000. At our election, loans under the Unsecured Credit Facility may be made as Base Rate Loans or Secured Overnight Financing Rate, or SOFR, Loans. See Part II, Item 7. "Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources," for additional information.

•As of March 10, 2023, we owned 132 real estate healthcare properties, comprising approximately 5,535,000 rentable square feet of single-tenant and multi-tenant commercial spaces. As of March 10, 2023, the rentable space of our healthcare properties was 99.5% leased. Additionally, we owned two undeveloped land parcels as of March 10, 2023.

•As of March 10, 2023, we had an outstanding principal balance of $575,000,000 under our Unsecured Credit Facility.

Investment Objectives and Policies

Our primary investment objectives at this time are to:

•acquire high quality healthcare properties leased to tenants along the continuum of care, capitalizing on critical and structural economic growth drivers;

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•pay regular cash distributions to stockholders;

•preserve, protect and return capital contributions to stockholders;

•realize appreciated growth in the value of our investments upon the sale of such investments in whole or in part; and

•be prudent, patient and deliberate with respect to the purchase and sale of our investments considering current and future real estate markets.

We cannot assure stockholders that we will attain these objectives or that the value of our assets will not decrease. Furthermore, within our investment objectives and policies, we have substantial discretion with respect to the selection of specific investments and the purchase and sale of our assets, subject to the approval of the Board. The Board may revise our investment objectives and policies if it determines that it is in the best interest of our stockholders.

Investment Strategy

We focus our investment activities on acquiring preferably net-leased properties that are primarily in the healthcare sector. We currently expect that most of our properties will continue to be located throughout the continental United States; however, we may purchase properties in other jurisdictions. We may also invest in real estate-related debt and equity securities that meet our investment strategy and return criteria. We evaluate our assets in an effort to avoid any investments that would cause us to fail to maintain our REIT status or cause us or any of our subsidiaries to be an investment company under the Investment Company Act of 1940.

We seek to obtain investments that are (i) essential to the successful business operations of the tenants; (ii) leased to creditworthy and investment grade tenants, preferably on a net-leased basis; (iii) long-term leases, preferably with terms of six years or longer, which typically include annual or periodic fixed rental increases; and (iv) located in geographically diverse, established markets with superior access and visibility.

We may acquire properties in various stages of development or that require substantial refurbishment or renovation. This determination is made based upon a variety of factors, including the available risk-adjusted returns for such properties when compared with other available properties, the effect such properties would have on the diversification of our portfolio, and our investment objectives of realizing both current income and capital appreciation upon the sale of such properties.

We endeavor to achieve a well-balanced portfolio of real estate investments that is diversified by tenancy, geographic location, age and lease maturities. We seek to acquire properties primarily in the high-growth healthcare sector and tenants of the properties that are diversified between national, regional and local entities.

Creditworthy Tenants

We expect the tenants and/or sponsors of the tenants of our healthcare properties to be creditworthy national or regional companies generally with high net worth and high operating income.

A tenant is considered creditworthy if it has a financial profile that we believe meets our criteria. In evaluating the creditworthiness of a current tenant or a prospective tenant, we consider various factors, including, but not limited to, the proposed terms of the property acquisition, the financial condition of the tenant and/or the sponsor, the operating history of the property with the tenant, the tenant’s market share and track record within its industry segment, the general health and outlook of the tenant’s industry segment, and the lease length and other lease terms at the time of the property acquisition.

We monitor the credit of our tenants in an effort to stay abreast of any material changes in credit quality. We monitor tenant credit by: (1) reviewing the credit ratings of tenants (or their parent companies) that are rated by nationally recognized rating agencies; (2) reviewing financial statements that are publicly available or that are required to be delivered to us under the applicable lease; (3) monitoring industry reports and other available information regarding our tenants and their underlying businesses; (4) monitoring the timeliness of rent collections; and (5) conducting periodic inspections of our properties to ascertain proper maintenance, repair and upkeep.

Investment Decisions

In evaluating investments in properties, we consider various factors, including, to the extent such information is available with respect to such property, the following:

•proposed purchase price, terms and conditions;

•physical condition, age, curb appeal and environmental reports;

•location, visibility and access;

•historical financial performance;

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•tenant rent roll and tenant creditworthiness;

•lease terms, including rent, rent increases, length of lease term, specific tenant and landlord responsibilities, renewal, expansion, termination, purchase options, exclusive and permitted uses provisions, assignment and sublease provisions, and co-tenancy requirements;

•local market economic conditions, demographics and population growth patterns;

•neighboring properties; and

•potential for new property construction in the area.

Investing in and Originating Loans

Our criteria for originating or acquiring loans are substantially the same as those involved in our investment in properties. We may invest in mortgage, bridge or mezzanine loans. Further, we may invest in unsecured loans or loans secured by assets other than real estate.

Our underwriting process typically involves comprehensive financial, structural, operational and legal due diligence. We do not require an appraisal of the underlying property from a certified independent appraiser for an investment in mortgage, bridge or mezzanine loans.

We may originate loans from mortgage brokers or personal solicitations of suitable borrowers, or we may purchase existing loans that were originated by other lenders. We evaluate all potential loan investments to decide whether the term of the loan, the security for the loan and the loan-to-value ratio meet our investment criteria and objectives.

Investing in Real Estate Securities

We may invest in non-majority owned securities of both publicly-traded and private companies primarily engaged in real estate businesses, including REITs and other real estate operating companies, and securities issued by pass-through entities of which substantially all of the assets consist of qualifying assets or real estate-related assets. We may purchase the common stock, preferred stock, debt, or other securities of these entities or options to acquire such securities.

Acquisition Structure

We have and expect to continue to acquire fee interests in properties (a fee interest is the absolute, legal possession and ownership of land, property, or rights), although we may utilize other methods of acquiring a property if we deem them to be advantageous.

In an effort to achieve our investment objectives, and to further diversify our portfolio, we have invested and expect to continue to invest in properties using various acquisition structures, which could include direct and indirect acquisitions, joint ventures, leveraged investments, issuing units in our Operating Partnership in exchange for properties and making mortgages or other loans secured by the same types of properties which we may acquire.

Joint Ventures

We may enter into joint ventures, partnerships and other co-ownership partnerships for the purpose of making investments. Some of the potential reasons to enter into a joint venture may be to acquire assets we could not otherwise acquire, to reduce our capital commitment to a particular asset, or to benefit from certain expertise a partner might have. In determining whether to invest in a particular joint venture, we evaluate the assets of the joint venture under the criteria described elsewhere in this Annual Report on Form 10-K for the selection of our investments. We also evaluate the terms of the joint venture, as well as the financial condition, operating capabilities and integrity of our partner or partners.

Disposition Policy

We typically intend to hold each asset we acquire for an extended period of time. However, circumstances may arise that could result in the sale of some assets earlier than initially expected. The determination of whether an asset will be sold or otherwise disposed of is made after consideration of relevant factors, including prevailing economic conditions, specific real estate market conditions, tax implications for our stockholders, and other factors. The requirements for qualification as a REIT for federal income tax purposes may put some limits on our ability to sell assets after short holding periods.

Financing Strategy and Policies

We believe that utilizing borrowing is consistent with our investment objectives and has the potential to maximize returns to our stockholders. Financing for acquisitions and investments may be obtained at the time an asset is acquired or an investment is made or at a later time. In addition, debt financing may be used from time to time for property improvements, tenant improvements, leasing commissions and other working capital needs. The form of our indebtedness will vary and could

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be long-term or short-term, secured or unsecured, or fixed-rate or floating rate. We will not enter into interest rate swaps or caps, or similar hedging transactions or derivative arrangements for speculative purposes, but may do so in order to manage or mitigate our interest rate risk on variable rate debt.

Distribution Policy

The amount of distributions we pay to our stockholders is determined by the Board and is dependent on a number of factors, including funds available for payment of distributions, our financial condition, capital expenditure requirements, annual distribution requirements needed to maintain our status as a REIT under the Code and restrictions imposed by our organizational documents and Maryland law.

We currently pay, and intend to continue to pay, distributions to our stockholders. If we do not have enough cash from operations to fund distributions, we may sell assets in order to fund distributions, or make distributions out of net proceeds from potential future offerings. We have paid, and may continue to pay, distributions from sources other than from our cash flows from operations. Subject to certain exceptions, there is no limit to the amount of distributions that we may pay out of net proceeds from potential future offerings.

In accordance with our organizational documents and Maryland law, we may not make distributions that would: (1) cause us to be unable to pay our debts as they become due in the ordinary course of business; (2) cause our total assets to be less than the sum of our total liabilities plus senior liquidation preferences, if any; or (3) jeopardize our ability to maintain our qualification as a REIT.

To the extent that distributions to our stockholders are paid out of our current or accumulated earnings and profits, such distributions are taxable as ordinary income. To the extent that our distributions exceed our current and accumulated earnings and profits, such amounts constitute a return of capital to our stockholders for federal income tax purposes, to the extent of their basis in their stock, and thereafter will constitute a capital gain.

See Part II, Item 5. "Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities—Distributions," for further discussion on distribution rates approved by the Board.

Competition

As we purchase properties for our portfolio, we are in competition with other potential buyers (some of whom have more cash, available liquidity, and/or offer competitive advantages versus us in the acquisition of properties) for the same properties and may have to pay more to purchase the property than if there were no other potential acquirers, or we may have to locate another property that meets our investment criteria. Although we generally acquire properties subject to existing leases, the leasing of real estate is highly competitive in the current market, and we may experience competition for tenants from owners and managers of competing projects. As a result, we may have to provide free rent, incur charges for tenant improvements, or offer other inducements, or we might not be able to timely lease the space, all of which may have an adverse impact on our results of operations. At the time we determine to dispose of our properties, we are typically in competition with sellers of similar properties to locate suitable purchasers for our properties.

Concentration of Credit Risk and Significant Tenants

As of December 31, 2022, we had cash on deposit in certain financial institutions that had deposits in excess of current federally insured levels. We limit cash investments to financial institutions with high credit standing; therefore, we do not believe we are exposed to any significant credit risk on our cash deposits. To date, we have not experienced any loss of or lack of access to cash in our accounts.

The following table shows the tenant that accounted for 10% or more of our rental revenue for the year ended December 31, 2022:

Tenant	Total Number of Leases	Leased Sq Ft	2022 Rental Revenue (in thousands)		Percentage of 2022 Rental Revenue
Post Acute Medical, LLC, and its affiliates (1)	15	708,817	$	27,279	15.2	%

(1)    The leases are with tenants under the common control of Post Acute Medical, LLC and its affiliates and have lease expiration dates between 2030 and 2042.

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The following table shows the geographic diversification of our real estate properties that accounted for 10% or more of our rental revenue for the year ended December 31, 2022:

Location	Total Number of Leases	Leased Sq Ft	2022 Rental Revenue (in thousands)	Percentage of 2022 Rental Revenue
Houston-The Woodlands-Sugar Land, TX	5	490,742	19,828	11.0	%

Compliance with Governmental Regulations

Our real estate properties are subject to various federal, state and local regulatory laws and requirements, including, but not limited to, zoning regulations, building codes and land use laws and building, accessibility, occupancy and other permit requirements. Noncompliance could result in the imposition of governmental fines or an award of damages to private litigants. While we believe that we are currently in material compliance with these regulatory requirements, the requirements may change or new requirements may be imposed that could require significant unanticipated expenditures by us. Significant regulatory requirements include the laws and regulations described below.

REIT Laws and Regulations

We elected, and qualify, to be taxed as a REIT under Sections 856 through 860 of the Code. To maintain our qualification as a REIT, we must meet certain organizational and operational requirements, including a requirement to currently distribute at least 90.0% of our REIT taxable income, without regard to the deduction for dividends paid and excluding net capital gain, to our stockholders. As a REIT, we generally will not be subject to federal income tax on taxable income that we distribute to our stockholders.

If we fail to maintain our qualification as a REIT in any taxable year, we would then be subject to federal income taxes on our taxable income at regular corporate rates and would not be permitted to qualify for treatment as a REIT for federal income tax purposes for four years following the year during which qualification is lost, unless the Internal Revenue Service grants us relief under certain statutory provisions. Such an event could have a material adverse effect on our net income and net cash available for distribution to our stockholders.

Environmental Laws and Regulations

All real estate properties and the operations conducted on the real estate properties are subject to federal, state and local laws and regulations relating to environmental protection and human health and safety. In connection with ownership and operation of real estate, we may be potentially liable for costs and damages related to environmental matters. We intend to take all reasonable steps to fully comply with these laws, including obtaining environmental assessments of all properties that we acquire. We obtain Phase I Environmental Assessment Reports, and as needed, further environmental due diligence, including but not limited to Phase II Environmental Assessment Reports, upon each property acquisition, and, if determined necessary, during our period of ownership, to ensure that the properties that we acquire and own are free of environmental contamination and hazardous substances. We also carry environmental liability insurance on our properties, which provides coverage for pollution liability, for third-party bodily injury and property damage claims.

Environmental, Social and Governance Matters

We are committed to maintaining healthy, prosperous, and sustainable communities through thoughtful stewardship of the environment and conscientious management of our own corporate culture. In early 2022, the Board established the Environmental, Social and Governance Steering Committee, or the ESG Steering Committee, led by members of our management team and other senior managers. The ESG Steering Committee meets at least quarterly to discuss our strategy, initiatives, and progress, in support of our on-going commitment to corporate governance, social responsibility, environmental matters, sustainability, health and safety.

Environmental

Taking aim at climate concerns and employees' desire for workplace flexibility, we established a hybrid workplace model. In January 2022, we leased Class A Office space in a newly constructed building that intends to deliver a restorative professional environment that cultivates productivity, collaboration, engagement, and balance. The neighborhood in which the new office building is located is part of a community that has achieved the WELL Design & Operations designation under the WELL Community Standard, the first neighborhood to do so globally. The WELL Building Standard takes a holistic approach to health in the built environment addressing behavior, operations and design. The building is WELL Gold v2 Certified and LEED Silver Certified.

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Social and Governance

Corporate Culture: Our strong tone at the top begins with the Board, which has demonstrated its focus on advancing openness, honesty, fairness and integrity within the Company. Ethical behavior is an important cornerstone of our Company’s continued success and each of us has an obligation to report any accounting irregularity, theft, discrimination, harassment or other violation of the law. We are committed to creating an open and accountable workplace where employees feel empowered to speak up and raise issues. With this in mind, we provide multiple channels to speak up, ask for guidance, and report concerns. We continue to prioritize having "The Right People, In The Right Places, Doing The Right Things." In 2022, we were recognized as fourteenth place in the Tampa Bay Business Journal 2022 Best Places to Work contest in the Large Business Category. The survey results from the competition revealed that our employees feel recognized for their performance, are valued and cared for as employees and individuals, and have great trust in senior leaders to guide the Company to future success. We have once again been nominated by our valued employees for this notable award in 2023.

Core Values: We believe that our employees are aligned around core values that inspire our behavior as individuals and as an organization. Our core values are essential to the Company's culture. These values are critical to the success of the Company and are aligned with the Company's mission and vision statements. They define expectations for how all employees collaborate, communicate, interact and perform their roles within the Company. They describe for each employee the expectation of how "I ACT" and that is with Integrity, with Accountability, with transparent and honest Communication and by embracing Teamwork.

Social Impact and Community: Our mission is to engage, inspire, and empower our employees to make a positive impact on our community where we work and live. We strive to support each of our employees in engaging in the community in areas where they are passionate about and taking on causes that are personally meaningful to them. Employees are encouraged to drive positive change by dedicating their time and money to non-profit organizations. The Company has a volunteer program whereby employees are provided three paid days each year to use for service to the community. Our social impact programs are in support of several non-for-profit organizations.

Human Capital Resources

As of December 31, 2022, we had 54 employees. None of our employees are represented by a labor union or covered by a collective bargaining agreement. We aim to act with the highest integrity and operate with the highest ethical standards as we strive to create and maintain an inclusive work environment that values the uniqueness of each individual, and his or her ideas and experiences. We endeavor to maintain workplaces that are free from discrimination or harassment on the basis of color, race, sex, national origin, ethnicity, religion, age, disability, sexual orientation, gender identification or expression, or any other status protected by applicable law. We conduct annual training designed to prevent harassment and discrimination and monitor employee conduct year-round. The basis for recruitment, hiring, development, training, compensation and advancement at the Company is qualifications, performance, skills and experience. We believe that our employees are fairly compensated, without regard to race, sex, national origin, ethnicity, religion, age, disability, sexual orientation, gender identification or expression, or any other status protected by applicable law and are routinely recognized for outstanding performance. Our compensation and benefits program is designed to attract and retain talent and we review our compensation and benefits against market and industry benchmarks to ensure they are competitive. Our employees are offered significant flexibility to meet personal and family needs.

Available Information

We electronically file our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and all amendments to those reports with the SEC. We have also filed our Registration Statement on Form S-11, amendments to our Registration Statements and supplements to our prospectus in connection with our Offerings with the SEC. Copies of our filings with the SEC may be obtained from the SEC’s website, http://www.sec.gov. Access to these filings is free of charge. In addition, we make certain materials that are electronically filed with the SEC available at www.silarealtytrust.com as soon as reasonably practicable.

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Item 1A. Risk Factors

The factors described below represent our principal risks. Other factors may exist that we do not consider to be significant based on information that is currently available or that we are not currently able to anticipate.

Risks Related to Our Corporate Structure

The limit on the number of shares a person may own may discourage a takeover that could otherwise result in a premium price to our stockholders and may hinder a stockholder's ability to dispose of his or her shares.

Our charter, with certain exceptions, authorizes our directors to take such actions as are necessary and desirable to preserve our qualification as a REIT. In this respect, among other things, unless exempted (prospectively or retroactively) by the Board, no person may own (i) more than 9.8% in value of the aggregate of our outstanding shares (of any class or series, including common shares or preferred shares) of stock, or (ii) more than 9.8% (in value or number, whichever is more restrictive) of the aggregate of the outstanding shares of only our common stock. This restriction may have the effect of delaying, deferring or preventing a change in control of us, including an extraordinary transaction (such as a merger, tender offer or sale of all or substantially all our assets) that might provide a premium price for holders of our common stock, and may make it more difficult for a stockholder to sell or dispose of his or her shares.

Our charter permits the Board to issue stock with terms that may subordinate the rights of common stockholders or discourage a third party from acquiring us in a manner that might result in a premium price to our stockholders.

Our charter permits the Board to issue up to 510,000,000 shares of common stock, of which 185,000,000 are designated as Class A shares, 75,000,000 are designated as Class I shares, 175,000,000 are designated as Class T shares, and 75,000,000 are designated as Class T2 shares, and 100,000,000 shares of preferred stock. Currently, we do not have any Class T2 shares of stock or preferred stock outstanding. In addition, the Board, without any action by our stockholders, may amend our charter from time to time to increase or decrease the aggregate number of shares or the number of shares of any class or series of stock that we have authority to issue. The Board may classify or reclassify any unissued common stock or preferred stock into other classes or series of stock and establish the preferences, conversion or other rights, voting powers, restrictions, limitations as to dividends or other distributions, qualifications and terms and conditions of repurchase of any such stock. Thus, if also approved by a majority of our independent directors not otherwise interested in the transaction, who will have access, at our expense, to our legal counsel or independent legal counsel, the Board could authorize the issuance of additional preferred stock with terms and conditions that could have a priority as to distributions and amounts payable upon liquidation over the rights of the holders of our common stock. Preferred stock could also have the effect of delaying, deferring or preventing a change in control of us, including an extraordinary transaction (such as a merger, tender offer or sale of all or substantially all our assets) that might provide a premium price for holders of our common stock.

Our stockholders’ interest in us will be diluted if we issue additional shares.

Existing stockholders do not have preemptive rights to any shares issued by us in the future. Our charter authorizes 610,000,000 shares of stock, of which 510,000,000 shares are classified as common stock and 100,000,000 are classified as preferred stock. Subject to any limitations set forth under Maryland law, the Board may increase the number of authorized shares of stock, increase or decrease the number of shares of any class or series of stock designated, or reclassify any unissued shares without the necessity of obtaining stockholder approval. All such shares may be issued in the discretion of the Board. Therefore, existing stockholders would experience dilution of their equity investment in us if we (i) sell additional shares in the future, including those issued pursuant to our DRIP Offering, (ii) sell securities that are convertible into shares of our common stock, (iii) issue shares of our common stock in a private offering of securities to institutional investors, (iv) issue restricted shares of our common stock to our independent directors and employees, or (v) issue shares of our common stock in a merger or to sellers of properties acquired by us in connection with an exchange of limited partnership interests of our Operating Partnership. Because the limited partnership interests of our Operating Partnership may, in the discretion of the Board, be exchanged for shares of our common stock, any merger, exchange or conversion between our Operating Partnership and another entity ultimately could result in the issuance of a substantial number of shares of our common stock, thereby diluting the percentage ownership interest of other stockholders. Because of these and other reasons, our stockholders may experience substantial dilution in their percentage ownership of our shares.

We may be unable to maintain cash distributions or increase distributions over time.

There are many factors that can affect the availability and timing of cash distributions to stockholders. The amount of cash available for distributions is affected by many factors, such as our ability to buy properties, rental income from such properties and our operating expense levels, as well as many other variables. Actual cash available for distributions may vary substantially from estimates. We cannot assure our stockholders that we will be able to maintain our current level of distributions or that distributions will increase over time.

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Provisions of the Maryland General Corporation Law, or the MGCL, and of our charter and bylaws could deter takeover attempts and have an adverse impact on a stockholder’s ability to exit the investment.

The MGCL, our charter, and our bylaws contain provisions that may discourage, delay or make more difficult a change in control of the Company. We are subject to the Maryland Business Combination Act, which may discourage third parties from trying to acquire control of us and increase the difficulty of consummating such an offer. In addition, with some exceptions, the Maryland Control Share Acquisition Act, provides that a holder of "control shares" of a Maryland corporation acquired in a control share acquisition has no voting rights, except to the extent approved by a vote of stockholders entitled to cast two-thirds of the votes entitled to be cast on the matter, excluding "control shares" owned by the acquiring person, owned by the Company's officers, and owned by the Company's employees who are also directors. Our bylaws, as permitted by the MGCL, contain a provision exempting from the Maryland Control Share Acquisition Act any and all acquisitions of our stock by any person. If we amend our bylaws to repeal the exemption from the Maryland Control Share Acquisition Act, the Maryland Control Share Acquisition Act also may make it more difficult for a third party to obtain control of us and increase the difficulty of consummating such an offer. Further, the “unsolicited takeover” provisions of Title 3, Subtitle 8 of the MGCL permit the Board, without stockholder approval and regardless of what is provided in our charter or bylaws, to implement certain takeover defenses, including adopting a classified board or increasing the vote required to remove a director.

These provisions, as well as other provisions of our charter and bylaws, may delay, defer, or prevent a transaction or a change in control that might otherwise be in the best interests of our stockholders.

General Risks Related to Investments in Real Estate

Our operating results may be affected by economic and regulatory changes that have an adverse impact on the real estate market in general, which may prevent us from being profitable or from realizing growth in the value of our real estate properties.

Our operating results are subject to risks generally incident to the ownership of real estate, which may prevent us from being profitable, realizing growth or maintaining the value of our real estate properties, including: changes in general economic or local conditions including inflationary and/or recessionary conditions; tenant turnover, technological changes and changes in supply of or demand for similar or competing properties in an area; changes in the cost or availability of insurance; changes in interest rates and availability of permanent mortgage funds that may render the sale of a property difficult or unattractive; changes in tax, real estate, environmental and zoning laws; and periods of high interest rates and tight money supply.

If a tenant declares bankruptcy, we may be unable to collect balances due under relevant leases, which would reduce our cash flow from operations and the amount available for distributions to our stockholders.

Any of our tenants, or any guarantor of a tenant’s lease obligations, could be subject to a bankruptcy proceeding. Such a bankruptcy filing would bar all efforts by us to collect pre-bankruptcy debts from these entities or their properties, unless we receive an enabling order from the bankruptcy court. Post-bankruptcy debts would be paid currently. If a lease is assumed, all pre-bankruptcy balances owing under it must be paid in full. If a lease is rejected by a tenant in bankruptcy, we would have a general unsecured claim for damages. If a lease is rejected, it is unlikely we would receive any material payments from the tenant because our claim is capped at the rent reserved under the lease, without acceleration, for the greater of one year or 15% of the remaining term of the lease, but not greater than three years, plus rent already due but unpaid. This claim could be paid only if funds were available, and then only in the same percentage as that realized on other unsecured claims.

A tenant or lease guarantor bankruptcy could delay efforts to collect past due balances under the relevant leases, and could ultimately preclude full collection of these sums. Such an event could cause a decrease or cessation of rental payments that would mean a reduction in our cash flow and the amount available for distributions to our stockholders. In the event of a bankruptcy, we cannot give assurance that the tenant or its trustee will assume our lease. If a given lease, or guaranty of a lease, is not assumed, our cash flow and the amounts available for distributions to our stockholders may be adversely affected.

A high concentration of our properties in a particular geographic area would magnify the effects of downturns or natural disasters in that geographic area.

There is a geographic concentration of risk subject to fluctuations in the economies of the various metropolitan statistical area, or MSA's, in which we own properties. Geographic concentration of our properties exposes us to risks related to or arising from economic downturns or natural disasters in the areas where our properties are located. A regional or local recession or a natural disaster in any of these areas could adversely affect our ability to generate or increase operating revenues, attract new tenants or dispose of unproductive properties.

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Our investments in properties where the underlying tenant has a below investment grade credit rating, as determined by major credit rating agencies, or unrated tenants, may have a greater risk of default and therefore may have an adverse impact on our returns on that asset and our operating results.

During the year ended December 31, 2022, approximately 16.0% of our total rental revenue was derived from tenants that had an investment grade credit rating from a major ratings agency, 6.2% of our total rental revenue was derived from tenants that were rated but did not have an investment grade credit rating from a major ratings agency and 77.8% of our total rental revenue was derived from tenants that were not rated. Approximately 24.4% of our total rental revenue was derived from non-rated tenants that were affiliates of companies having an investment grade credit rating. Our investments with tenants that do not have an investment grade credit rating from a major ratings agency or were not rated and are not affiliated with companies having an investment grade credit rating may have a greater risk of default and bankruptcy than investments in properties leased exclusively to investment grade tenants. When we invest in properties where the tenant does not have a publicly available credit rating, we use certain credit assessment tools and rely on our own estimates of the tenant’s credit rating which include but are not limited to reviewing the tenant’s financial information (i.e., financial ratios, net worth, revenue, cash flows, leverage and liquidity) and monitoring local market conditions. If our lender or a credit rating agency disagrees with our ratings estimates, or our ratings estimates are otherwise inaccurate, we may not be able to obtain our desired level of leverage or our financing costs may exceed those that we projected. This outcome could have an adverse impact on our returns on that asset and hence our operating results.

Properties that have vacancies for a significant period of time could be difficult to sell, which could diminish the return on our stockholders’ investment.

A property may incur vacancies either by the continued default of tenants under their leases or the expiration of tenant leases. If vacancies continue for an extended period of time, we may suffer reduced revenues, resulting in less cash to be distributed to stockholders. In addition, because properties’ market values depend principally upon the value of the properties’ leases, the resale value of properties with prolonged vacancies could suffer, which could further reduce our stockholders’ return.

We may obtain only limited warranties when we purchase a property and would have only limited recourse if our due diligence did not identify any issues that lower the value of our property.

The seller of a property often sells such property in its “as is” condition on a “where is” basis and “with all faults,” without any warranties of merchantability or fitness for a particular use or purpose. In addition, purchase agreements may contain only limited warranties, representations and indemnifications that will only survive for a limited period after the closing. The purchase of properties with limited warranties increases the risk that we may lose some or all of our invested capital in the property as well as the loss of rental income from that property.

We may be unable to secure funds for future tenant improvements or capital needs, which could adversely impact our ability to pay cash distributions to our stockholders.

When tenants do not renew their leases or otherwise vacate their space, it is usual that, in order to attract replacement tenants, we expend substantial funds for tenant improvements and tenant refurbishments to the vacated space. In addition, although we expect that our leases with tenants will require tenants to pay routine property maintenance costs, we will likely be responsible for any major structural repairs, such as repairs to the foundation, exterior walls and rooftops. We have used substantially all of our gross offering proceeds to buy real estate and pay various fees and expenses. Accordingly, if we need additional capital to improve or maintain our properties or for any other reason, we will have to obtain financing from other sources, such as cash flow from operations, borrowings, property sales or future equity offerings. These sources of funding may not be available on attractive terms or at all. If we cannot procure additional funding for capital improvements, our investments may generate lower cash flows or decline in value, or both.

We may not be able to sell a property at a price equal to, or greater than, the price for which we purchased such property, which may lead to a decrease in the value of our assets and a reduction in the value of shares held by our stockholders.

Some of our leases will not contain rental increases over time, or the rental increases may be less than the fair market rate at a future point in time. Therefore, the value of the property to a potential purchaser may not increase over time, which may restrict our ability to sell a property, or if we are able to sell such property, may lead to a sale price less than the price that we paid to purchase the property.

Real estate-related taxes may increase and if these increases are not passed on to tenants, our income will be reduced.

Some local real property tax assessors may seek to reassess some of our properties as a result of our acquisition of such properties. From time to time our property taxes may increase as property values or assessment rates change or for other reasons deemed relevant by the assessors. An increase in the assessed valuation of a property for real estate tax purposes will result in an increase in the related real estate taxes on that property. Although a substantial portion of our tenant leases may

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permit us to pass through such tax increases to the tenants for payment, there is no assurance that renewal leases or future leases will be negotiated on the same basis. Increases not passed through to tenants will adversely affect our income, cash available for distributions, and the amount of distributions to our stockholders.

Covenants, conditions and restrictions may restrict our ability to operate our properties.

Some of our properties may be contiguous to other parcels of real property, comprising part of the same commercial center. In connection with such properties, there are significant covenants, conditions and restrictions, or CC&Rs, restricting the operation of such properties and any improvements on such properties, and related to granting easements on such properties. Moreover, the operation and management of the contiguous properties may impact such properties. Compliance with CC&Rs may adversely affect our operating costs and reduce the amount of funds that we have available to pay distributions.

Our operating results may be negatively affected by potential development and construction delays and result in increased costs and risks.

We have acquired and developed properties upon which we will construct improvements. We will be subject to uncertainties associated with re-zoning for development, environmental concerns of governmental entities and/or community groups, and our builder’s ability to build in conformity with plans, specifications, budgeted costs, and timetables. A builder’s performance also may be affected or delayed by conditions beyond the builder’s control. Delays in completion of construction could also give tenants the right to terminate preconstruction leases. We may incur additional risks when we make periodic progress payments or other advances to builders before they complete construction. These and other such factors can result in increased costs of a project or loss of our investment. In addition, we will be subject to normal lease-up risks relating to newly constructed projects. We also must rely on rental income and expense projections and estimates of the fair market value of property upon completion of construction when agreeing upon a price at the time we acquire a property. If our projections are inaccurate, we may pay too much for a property, and our return on our investment could suffer.

We may invest in unimproved real property. For purposes of this paragraph, "unimproved real property" is real property which has not been acquired for the purpose of producing rental or other operating income, has no development or construction in process and on which no construction or development is planned in good faith to commence within one year. Returns from development of unimproved properties are also subject to risks associated with re-zoning the land for development and environmental concerns of governmental entities and/or community groups. Although we intend to limit any investment in unimproved property, our stockholders’ investment nevertheless is subject to the risks associated with investments in unimproved real property.

Costs of complying with governmental laws and regulations, including those relating to environmental protection, human health and safety and disability accommodation, may adversely affect our income and the cash available for any distributions.

All real property investments and the operations conducted in connection with such investments are subject to federal, state and local laws and regulations relating to environmental protection, human health and safety and disability accommodation. Some of these laws and regulations may impose joint and several liability on customers, owners or operators for the costs to investigate or remediate contaminated properties, regardless of fault or whether the acts causing the contamination were legal. They also may impose restrictions on the manner in which real property may be used or businesses may be operated. The costs of complying with these laws and regulations may have a material adverse effect on our business, financial condition and results of operations and our ability to make distributions to our stockholders.

If we sell properties by providing financing to purchasers, defaults by the purchasers would adversely affect our cash flows.

In some instances we may sell our properties by providing financing to purchasers. When we provide financing to purchasers, we will bear the risk that the purchaser may default, which could negatively impact our cash distributions to stockholders. Even in the absence of a purchaser default, the distribution of the proceeds of sales to our stockholders, or their reinvestment in other assets, will be delayed until the promissory notes or other property we may accept upon the sale are actually paid, sold, refinanced or otherwise disposed of. In some cases, we may receive initial down payments in cash and other property in the year of sale in an amount less than the selling price, and subsequent payments will be spread over a number of years. If any purchaser defaults under a financing arrangement with us, it could negatively impact our ability to pay cash distributions to our stockholders.

Risks Associated with Investments in the Healthcare Property Sector

Our properties and tenants may be unable to compete successfully, which could result in lower rent payments, reduce our cash flows from operations and the amount available for distributions to our stockholders.

Our current and potential properties and our tenants may face competition from nearby hospitals and other properties that provide comparable services. Some of our competing facilities may be owned by governmental agencies and are supported by

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tax revenues, and others are owned by non-profit corporations and therefore are supported to a large extent by endowments and charitable contributions and pay little or no taxes. Not all of our properties will be affiliated with non-profit corporations and receive such support. Additionally, the introduction and expansion of new stakeholders competing with traditional providers in the healthcare market and telemedicine are disrupting "agents" in the healthcare industry and could lead to decreased demand for healthcare properties and new trends in payments. The trend of increasing private equity investment in healthcare providers could also increase competition in the healthcare market. Our tenants’ failure to compete successfully with other healthcare providers could adversely affect their ability to make rental payments, which could adversely affect our rental revenues. Further, from time to time and for reasons beyond our control, referral sources, including physicians and managed care organizations, may change their lists of hospitals, physicians or other healthcare providers to which they refer patients or that are permitted to participate in the payer program. This could adversely affect our tenants’ ability to make rental payments, which could adversely affect our rental revenues. Any reduction in rental revenues resulting from the inability of our healthcare properties and our tenants to compete successfully may have a material adverse effect on our business, financial condition and results of operations and our ability to make distributions to our stockholders.

Compliance with and changes to healthcare laws and regulations could have a material adverse effect on the financial condition of our tenants and, consequently, their ability to make rent payments and meet obligations to us.

Federal, state and local laws, statutes and regulatory policies, including the Patient Protection and Affordable Care Act of 2010, Transparency in Coverage rule and the Consolidated Appropriations Act of 2021, the laws listed in the paragraph directly below, and any future changes and decisions, may impact one or more specific providers that lease space in any of our properties. In addition, many states also regulate the establishment and construction of healthcare facilities and services, and the expansion of existing healthcare facilities and services through a certificate of need, or CON, laws, which may include regulation of certain licenses, medical equipment, and capital expenditures. Similarly, tenants of our healthcare properties may become subject to legal claims that their services have resulted in patient injury or other adverse effects in violation of applicable laws, including the Federal False Claims Act. Such claims may cause our tenants to incur punitive damages arising from professional liability and general liability claims and/or become subject to governmental investigations, enforcement actions or litigation.

Healthcare provider tenants may be subject to numerous laws and regulations that regulate, among other things, quality and medical necessity of care, insurance and patient billing, the security and privacy of patient information, healthcare provider financial interests and conflicts of interest, self-referrals, price transparency, corporate practice of medicine and surprise billing. Such laws include, but are not limited to: the Medicare and Medicaid statutes; the Stark Law; the civil False Claims Act; the federal False Claims Law; the federal Anti-Kickback Statute; applicable state law prohibitions against kickbacks, fraud and abuse, patient brokering, advertising and marketing of healthcare items and services and fee splitting; state laws regulating the corporate practice of medicine; the federal Eliminating Kickbacks in Recovery Act; the Program Fraud Civil Remedies Act; the Civil Monetary Penalties Law; the Exclusion Laws; the Health Insurance Portability and Accountability Act of 1996 and applicable state laws regarding patient privacy and the security of patient health information; the Clinical Laboratory Improvement Amendments of 1988; the Travel Act; and all of the foregoing as may be amended and including any regulations or decisions promulgated thereunder.

The failure to comply with these laws and regulations, or the failure to secure CON approval to undertake a desired project could adversely affect our tenants’ ability to make rent payments to us which may have an adverse effect on our business, financial condition, and results of operations, and our ability to make distributions to our stockholders.

Adverse trends in healthcare provider operations may negatively affect our lease revenues and our ability to make distributions to our stockholders.

The healthcare industry is currently experiencing, among other things: changes in the demand for and methods of delivering healthcare services, particularly as telemedicine and telehealth gain popularity; a shift in the provision of healthcare services from inpatient to outpatient settings; changes in third party reimbursement methods and policies, including an increased focus on value-based reimbursement with downside provider risk; consolidation and pressure to integrate within the healthcare industry through acquisitions, joint ventures and managed service organizations; increased scrutiny of billing, referral, and other practices by U.S. federal and state authorities; consolidation of health insurers; competition among healthcare providers; staffing shortages (particularly nursing staff) and increases in wages as well as inflation in the cost of supplies; regulatory and government reimbursement uncertainty, increased price transparency resulting from the Transparency in Coverage rule and the Consolidated Appropriations Act of 2021, the Hospital Price Transparency regulation of 2021, the No Surprises Act and other healthcare reform laws and court decisions on cases challenging the legality of such laws; federal and state government plans to reduce budget deficits and address debt ceiling limits by lowering healthcare provider Medicaid payment rates; increased scrutiny of control over release of confidential patient medical information and increased attention to compliance with regulations designed to safeguard protected health information and cyberattacks on healthcare entities and their business associates (i.e., vendors who handle patient protected health information); increased federal government enforcement of the requirements of and fraud in relation to programs under which healthcare providers received COVID-19

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funding, including programs under the Coronavirus, Aid, Relief, and Economic Security Act; anticipated increased scrutiny and enforcement of anti-trust laws by the Federal Trade Commission and Department of Justice Antitrust Division; and increased scrutiny of billing, referral and other practices by federal and state authorities. These factors may adversely affect demand for healthcare facilities by potential future tenants and/or the economic performance of some or all of our tenants and, in turn, our lease revenues, which may have a material adverse effect on our business, financial condition, results of operations, operation, and our ability to make distributions to our stockholders.

Risks Associated with Debt Financing and Investments

Interest rate exposure could have a material adverse effect on our results of operations, financial condition and ability to pay distributions to stockholders at our current level.

Our revenues are generated by our leases, which are typically medium-to-long-term leases with fixed rental rates, subject to periodic rent escalators. The unhedged portion of the Unsecured Credit Facility is subject to Term SOFR. The generally fixed nature of revenues and the variable rate of our debt obligations create interest rate risk for us. Increases in interest rates may not be matched by increases in our rental income, which could increase our expenses and adversely affect our business, financial condition, results of operations, and our ability to make distributions to our stockholders. During inflationary periods, interest rates have historically increased, which would have a direct effect on the interest expense of our borrowings. Our exposure to increases in interest rates is limited to our variable rate borrowings, which consist of borrowings under the Unsecured Credit Facility. As of December 31, 2022, our total principal debt outstanding was $583,000,000, of which 16.8% was unhedged variable-rate debt and 83.2% was variable rate debt fixed through interest rate swaps. Therefore, a significant increase in interest rates could have an adverse impact on our financing costs and interest expense.

We have broad authority to incur debt, and high debt levels could hinder our ability to make distributions and could decrease the value of our stockholders’ investments.

High debt levels would cause us to incur higher interest charges, would result in higher debt service payments, and could be accompanied by restrictive covenants. These factors could limit the amount of cash we have available to distribute and could result in a decline in the value of our stockholders’ investments.

We incur borrowings, which may increase our business risks, and could hinder our ability to make distributions to our stockholders.

We have obtained a credit facility and may obtain other similar financing arrangements in order to acquire properties. We may also decide to later further leverage our properties. We may pledge all or some of our real properties as security for that debt to obtain funds to acquire real properties. We may borrow if we need funds to pay a desired distribution rate to our stockholders. We may also borrow if we deem it necessary or advisable to ensure that we qualify and maintain our qualification as a REIT for federal income tax purposes. If there is a shortfall between the cash flow from our properties and the cash flow needed to service debt, then the amount available for distribution to our stockholders may be reduced.

Lenders may require us to enter into restrictive covenants relating to our operations, which could limit our ability to make distributions to stockholders at our current level.

When providing financing, a lender could impose restrictions on us that affect our distribution and operating policies, and our ability to incur additional debt. Loan documents we enter into may contain covenants that limit our ability to discontinue insurance coverage. These or other limitations may adversely affect our flexibility and limit our ability to make distributions to stockholders at our current level.

Disruptions in the credit markets could have a material adverse effect on our results of operations, financial condition and ability to pay distributions to stockholders at our current level.

In the past, domestic and international financial markets experienced significant disruptions which were brought about in large part by failures in the U.S. banking system. International conflicts and resultant U.S. response, including financial sanctions, may also disrupt credit markets. These disruptions severely impacted the availability of credit and contributed to rising costs associated with obtaining credit. If debt financing is not available on terms and conditions we find acceptable, we may not be able to obtain financing for investments. If these disruptions in the credit markets resurface, our ability to borrow monies to finance the purchase of, or other activities related to, real estate assets will be negatively impacted. If we are unable to borrow monies on terms and conditions that we find acceptable, we may be forced to reduce the number of properties we can purchase and/or dispose of some of our assets. These disruptions could also adversely affect the return on the properties we purchase. In addition, if we pay fees to lock in a favorable interest rate, falling interest rates or other factors could require us to forfeit these fees. All of these events would have a material adverse effect on our results of operations, financial condition and ability to pay distributions to stockholders at our current level.

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U.S. Federal Income Tax Risks

Failure to maintain our qualification as a REIT would adversely affect our operations and our ability to make distributions.

In order for us to maintain our qualification as a REIT, we must satisfy certain requirements set forth in the Code and Treasury Regulations and various factual matters and circumstances that are not entirely within our control. We intend to structure our activities in a manner designed to satisfy all of these requirements. However, if certain of our operations were to be recharacterized by the Internal Revenue Service, or IRS, such recharacterization could jeopardize our ability to satisfy all of the requirements for qualification as a REIT.

If we fail to maintain our qualification as a REIT for any taxable year and we do not qualify for certain statutory relief provisions, we will be subject to U.S. federal income tax on our taxable income at corporate rates. In addition, we would generally be disqualified from treatment as a REIT for the four taxable years following the taxable year in which we lost our REIT status. Losing our REIT status would reduce our net earnings available for investment or distribution to stockholders because of the additional corporate-level tax liability. In addition, distributions to stockholders would no longer qualify for the dividends-paid deduction, and we would no longer be required to make distributions. If this occurs, we might be required to borrow funds or liquidate some investments in order to pay the applicable tax. Our failure to qualify as a REIT would adversely affect the return of stockholders' investments.

To maintain our qualification as a REIT, we must meet annual distribution requirements, which may result in us distributing amounts that may otherwise be used for our operations and which could result in our forgoing otherwise attractive investment opportunities.

To maintain the favorable tax treatment afforded to REITs under the Code, we generally will be required each year to distribute to our stockholders at least 90% of our REIT taxable income determined without regard to the dividends-paid deduction and excluding net capital gain. To the extent that we do not distribute all of our net capital gains or distribute less than 100% of our REIT taxable income, as adjusted, we will have to pay tax on the undistributed amounts at corporate tax rates. Furthermore, if we fail to distribute during each calendar year at least the sum of: (a) 85% of our ordinary income for that year; (b) 95% of our capital gain net income for that year; and (c) any undistributed taxable income from prior periods, ((a) through (c), collectively referred to as the Required Distribution), we would have to pay a 4% nondeductible excise tax on the excess of the Required Distribution over the sum of (x) the amounts that we actually distributed; and the amounts we retained and upon which we paid income tax at the corporate level. These requirements could cause us to distribute amounts that otherwise would be spent on investments in real estate assets, and it is possible that we might be required to borrow funds, possibly at unfavorable rates, or sell assets to fund these distributions. In addition, we could pay part of these required distributions in shares of our common stock, which could result in stockholders having tax liabilities from such distributions in excess of the cash they receive. It is possible the taxable share distribution will not count towards our distribution requirement, in which case adverse consequences could apply. Although we intend to continue to make distributions sufficient to meet the annual distribution requirements and to avoid U.S. federal income and excise taxes, it is possible that we might not always be able to do so.

Certain of our business activities are potentially subject to the prohibited transaction tax, which could reduce the return on our stockholders’ investment.

Our ability to dispose of a property during the first few years following its acquisition may be restricted to a substantial extent as a result of our REIT status. Under applicable provisions of the Code regarding "prohibited transactions" by REITs, we would be subject to a 100% tax on any gain recognized on the sale or other disposition of any property (other than foreclosure property) that we own, directly or through any subsidiary entity, including our Operating Partnership, that is deemed to be inventory or property held primarily for sale to customers in the ordinary course of trade or business. Whether property is inventory or otherwise held primarily for sale to customers in the ordinary course of a trade or business depends on the particular facts and circumstances surrounding each property. Properties we own, directly or through any subsidiary entity, including our Operating Partnership, may, depending on how we conduct our operations, be treated as inventory or property held primarily for sale to customers in the ordinary course of a trade or business. Any such taxes we pay would reduce our cash available for distribution to our stockholders. Our desire to avoid the prohibited transactions tax may cause us to forego disposition opportunities that would otherwise be advantageous if we were not a REIT.

In certain circumstances, we may be subject to U.S. federal, state and local income taxes as a REIT, which would reduce our cash available for distribution to our stockholders.

Even if we maintain our qualification as a REIT, we may be subject to U.S. federal, state and local income taxes. For example, we may be subject to the prohibited transactions tax and/or the excise tax for failing to make (or be deemed to have made) sufficient distributions, as described above. We also may decide to retain net capital gain we earn from the sale or other disposition of our property and pay income tax directly on such income. In that event, our stockholders would be treated as if they earned that income and paid the tax on it directly. However, stockholders that are tax-exempt, such as charities or qualified

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pension plans, would have no benefit from their deemed payment of such tax liability unless they file U.S. federal income tax returns and thereon seek a refund of such tax. We also may be subject to state and local taxes on our income or property, either directly or indirectly through our Operating Partnership or other companies through which we indirectly own assets. Any taxes we pay would reduce our cash available for distribution to our stockholders.

The use of taxable REIT subsidiaries, which may be required for REIT qualification purposes, would increase our overall tax liability and thereby reduce our cash available for distribution to our stockholders.

Some of our assets may need to be owned by, or operations may need to be conducted through, one or more taxable REIT subsidiaries. Any of our taxable REIT subsidiaries would be subject to U.S. federal, state and local income tax on its taxable income at applicable corporate rates. The after-tax net income of our taxable REIT subsidiaries would be available for distribution to us. Further, we would incur a 100% excise tax on transactions with our taxable REIT subsidiaries that are not conducted on an arm’s-length basis. For example, to the extent that the rent paid by one of our taxable REIT subsidiaries exceeds an arm’s-length rental amount, such amount would be potentially subject to a 100% excise tax. While we intend that all transactions between us and our taxable REIT subsidiaries would be conducted on an arm’s-length basis, and therefore, any amounts paid by our taxable REIT subsidiaries to us would not be subject to the excise tax, no assurance can be given that excise tax would not arise from such transactions. At this time, we have no taxable REIT subsidiaries.

Complying with REIT requirements may force us to forgo and/or liquidate otherwise attractive investment opportunities.

To qualify as a REIT for U.S. federal income tax purposes, we must continually satisfy tests concerning, among other things, the sources of our income, the nature and diversification of our assets, the amounts we distribute to our stockholders and the ownership of shares of our common stock. We may be required to forego otherwise attractive investments or make distributions to stockholders at disadvantageous times or when we do not have funds readily available for distribution. Thus, compliance with the REIT requirements may hinder our ability to operate solely on the basis of maximizing profits.

Complying with the REIT asset test requirements may force us to liquidate otherwise attractive investments.

To maintain our qualification as a REIT, we must ensure that at the end of each calendar quarter, at least 75% of the value of our assets consists of cash, cash items, government securities and qualified real estate assets, including certain mortgage loans and certain kinds of mortgage-related securities. The remainder of our investment in securities (other than government securities, taxable REIT subsidiaries and qualified real estate assets) generally cannot include more than 10% of the outstanding voting securities of any one issuer or more than 10% of the total value of the outstanding securities of any one issuer. In addition, in general, no more than 5% of the value of our assets can consist of the securities (other than government securities, taxable REIT subsidiaries, and qualified real estate assets) of any one issuer. No more than 20% of the value of our total assets can be represented by securities of one or more taxable REIT subsidiaries, and no more than 25% of the value of our assets may consist of "non-qualified publicly offered REIT instruments." If we fail to comply with these requirements at the end of any calendar quarter, we must correct the failure within 30 days after the end of the calendar quarter or qualify for certain statutory relief provisions to avoid losing our REIT qualification and suffering adverse tax consequences. As a result, we may be required to liquidate from our portfolio or not make otherwise attractive investments in order to maintain our qualification as a REIT. These actions could have the effect of reducing our income and amounts available for distribution to our stockholders.

If our leases are not considered as true leases for U.S. federal income tax purposes, we could fail to qualify as a REIT.

To qualify as a REIT, we must satisfy two gross income tests, under which specified percentages of our gross income must be derived from certain sources, such as “rents from real property.” In order for rent paid to us to qualify as “rents from real property” for purposes of the REIT gross income tests, the leases must be respected as true leases for U.S. federal income tax purposes and not be treated as service contracts, joint ventures, or some other type of arrangement. If our leases are not respected as true leases for U.S. federal income tax purposes, we could fail to qualify as a REIT, which would materially and adversely impact the value of an investment in our shares and in our ability to pay dividends to our stockholders.

Legislative or regulatory action could adversely affect the returns to our investors.

In recent years, numerous legislative, judicial and administrative changes have been made in the provisions of U.S. federal income tax laws applicable to investments similar to an investment in shares of our common stock. Additional changes to the tax laws are likely to continue to occur, and we cannot assure you that any such changes will not adversely affect our taxation and our ability to continue to qualify as a REIT or the taxation of a stockholder. Any such changes could have a material adverse effect on an investment in our shares or on the market value or the resale potential of our assets. Our stockholders are urged to consult with their own tax advisors with respect to the impact of recent legislation on their investment in our shares and the status of legislative, regulatory or administrative developments and proposals and their potential effect on an investment in our shares.

Although REITs generally receive better tax treatment than entities taxed as regular corporations, it is possible that future legislation would result in a REIT having fewer tax advantages, and it could become more advantageous for a company that

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invests in real estate to elect to be treated for U.S. federal income tax purposes as a regular corporation. As a result, our charter provides the Board with the power, under certain circumstances, to revoke or otherwise terminate our REIT election and cause us to be taxed as a regular corporation, without the vote of our stockholders. The Board has fiduciary duties to us and our stockholders and could only cause such changes in our tax treatment if it determines in good faith that such changes are in the best interests of our stockholders.

While the changes in the Tax Cuts and Jobs Act generally appear to be favorable with respect to REITs, the extensive changes to non-REIT provisions in the Internal Revenue Code may have unanticipated effects on us or our stockholders.

We urge you to consult with your own tax advisor with respect to the status of legislative, regulatory or administrative developments and proposals and their potential effect on an investment in shares of our common stock.

Dividends payable by REITs generally are subject to a higher tax rate than regular corporate dividends under current law.

The maximum U.S. federal income tax rate for “qualified dividends” payable to U.S. stockholders that are individuals, trusts and estates generally is 20%. Dividends payable by REITs, however, are generally not eligible for the reduced rates for qualified dividends and are taxed at ordinary income rates. However, for taxable years beginning after December 31, 2017, and before January 1, 2026, U.S. stockholders that are individuals, trusts and estates generally may deduct 20% of ordinary dividends from a REIT resulting in an effective maximum U.S. federal income tax rate of 29.6% on such income. Although these rules do not adversely affect the taxation of REITs or dividends payable by REITs, to the extent that the reduced rates continue to apply to regular corporate qualified dividends, investors that are individuals, trusts and estates may perceive investments in REITs to be relatively less attractive than investments in the stocks of non-REIT corporations that pay dividends, which could materially and adversely affect the value of the shares of REITs, including our common stock.

If our Operating Partnership fails to maintain its status as a partnership, its income may be subject to taxation, which would reduce the cash available for distribution to our stockholders.

We intend to maintain the status of our Operating Partnership as a partnership for U.S. federal income tax purposes. However, if the IRS were to successfully challenge the status of our Operating Partnership as a partnership or disregarded entity for such purposes, it would be taxable as a corporation. In such event, this would reduce the amount of distributions that our Operating Partnership could make to us. This would also result in our losing REIT status, and becoming subject to a corporate level tax on our own income. This would substantially reduce our cash available to pay distributions and the yield on our stockholders’ investment. In addition, if any of the partnerships or limited liability companies through which our Operating Partnership owns its properties, in whole or in part, loses its characterization as a partnership and is otherwise not disregarded for U.S. federal income tax purposes, it would be subject to taxation as a corporation, thereby reducing distributions to our Operating Partnership. Such a recharacterization of an underlying property owner could also threaten our ability to maintain REIT status and would have a material adverse impact on us.

Foreign purchasers of our shares may be subject to FIRPTA tax upon the sale of their shares or upon the payment of a capital gain dividend, which would reduce the net amount they would otherwise realize on their investment in our shares.

A foreign person (other than certain foreign pension plans and certain foreign publicly traded entities) disposing of a U.S. real property interest, including shares of a U.S. corporation whose assets consist principally of U.S. real property interests, is generally subject to the Foreign Investment in Real Property Tax Act of 1980, as amended, or FIRPTA, on the gain recognized on the disposition. Such FIRPTA tax does not apply to the disposition of stock in a REIT if the REIT is “domestically controlled.” A REIT is "domestically controlled" if less than 50% of the REIT’s stock, by value, has been owned directly or indirectly by persons who are not qualifying U.S. persons during a continuous five-year period ending on the date of disposition or, if shorter, during the entire period of the REIT’s existence. We cannot assure our stockholders that we will qualify as a "domestically controlled" REIT. If we were to fail to so qualify, any gain realized by foreign investors on a sale of our shares would be subject to FIRPTA tax, unless our shares were traded on an established securities market and the foreign investor did not at any time during a specified testing period directly or indirectly own more than 10% of the value of our outstanding common stock.

A foreign investor also may be subject to FIRPTA tax upon the payment of any capital gain dividend by us, which dividend is attributable to gain from sales or exchanges of U.S. real property interests. We encourage our stockholders to consult their own tax advisor to determine the tax consequences applicable to them if they are a foreign investor.

ERISA Risks

If our assets are deemed to be ERISA plan assets, we may be exposed to liabilities under Title I of ERISA and the Internal Revenue Code.

In some circumstances where an Employee Retirement Income Security Act of 1974, as amended, or ERISA, plan holds an interest in an entity, the assets of the entire entity are deemed to be ERISA plan assets unless an exception applies. This is

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known as the "look-through rule." Under those circumstances, the obligations and other responsibilities of plan sponsors, plan fiduciaries and plan administrators, and of parties in interest and disqualified persons, under Title I of ERISA and Section 4975 of the Code, as applicable, may be applicable, and there may be liability under these and other provisions of ERISA and the Code. We believe that our assets should not be treated as plan assets because the shares should qualify as "publicly-offered securities" that are exempt from the look-through rules under applicable Treasury Regulations. We note, however, that because certain limitations are imposed upon the transferability of shares so that we may qualify as a REIT, and perhaps for other reasons, it is possible that this exemption may not apply. If that is the case, and if we are exposed to liability under ERISA or the Code, our performance and results of operations could be adversely affected. Prior to making an investment in us, you should consult with your legal and other advisors concerning the impact of ERISA and the Code on your investment and our performance.

General Risk Factors

Our shares of common stock are not listed on an exchange, and we are not required to provide for a liquidity event. Therefore, it may be difficult for stockholders to sell their shares and, if stockholders are able to sell their shares, they will likely sell them at a substantial discount. Our stockholders are also limited in their ability to sell their shares pursuant to our share repurchase program and may have to hold their shares for an indefinite period of time.

There is currently no public market for our shares. Although we presently intend to consider alternatives for providing liquidity to our stockholders, we do not have a fixed date or method for providing stockholders with liquidity, and our completion of a liquidity event is not guaranteed. If we do not pursue a liquidity transaction, or delay such a transaction due to market conditions, shares may continue to be illiquid and stockholders may, for an indefinite period of time, be unable to convert their investment to cash easily and could suffer losses on their investment. If our stockholders are able to find a buyer for their shares, our stockholders likely will have to sell them at a substantial discount to their purchase price. Moreover, investors should not rely on our share repurchase program as a method to sell shares promptly because our share repurchase program includes numerous restrictions that limit stockholders' ability to sell shares to us, and the Board may suspend (in whole or in part) the share repurchase program at any time, and may amend, reduce or terminate our share repurchase program upon 30 days' prior notice to our stockholders for any reason it deems appropriate. The restrictions of our share repurchase program limit our stockholders’ ability to sell their shares should they require liquidity and limit our stockholders’ ability to recover the value they invested. We can only repurchase shares due to death or involuntary exigent circumstance in accordance with our share repurchase program, subject in each case to specified terms and limitations, including, but not limited to, quarterly share limitations, an annual 5.0% share limitation, and DRIP funding limitations. See Part II, Item 5. "Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities" for more information on the limitations of our share repurchase program.

It may be difficult to accurately reflect material events that may impact our Estimated Per Share NAV between valuations, and accordingly we may be selling and repurchasing shares at too high or too low a price.

Estimated Per Share NAV is based on the estimated value of our assets less the estimated value of our liabilities divided by the number of shares outstanding, calculated as of a certain date. The Estimated Per Share NAV of each of our Class A common stock, Class I common stock and Class T common stock is an estimate as of a certain time and may not reflect the value that stockholders will receive for their investment. The Estimated Per Share NAV is determined by an independent third-party valuation firm, the engagement of which is approved by the Audit Committee. The Financial Industry Regulatory Authority, or FINRA, rules provide no guidance on the methodology an issuer must use to determine its estimated value per share. As with any valuation methodology, our independent valuation firm's methodology is based upon a number of estimates and assumptions that may not be accurate or complete. Some of these estimates and assumptions relate to potential, future events and expectations, so they are inherently subject to inaccuracy and differences from actual results. Different parties with different assumptions and estimates could derive a different estimated value per share, and these differences could be significant. The Estimated Per Share NAV is not audited and does not represent the fair value of our assets or liabilities according to U.S. generally accepted accounting principles, or GAAP. Accordingly, with respect to the Estimated Per Share NAV, we can give no assurance that: (i) a stockholder would be able to resell his or her shares at the Estimated Per Share NAV; (ii) a stockholder would ultimately realize distributions per share equal to the Estimated Per Share NAV upon liquidation of our assets and settlement of our liabilities or a sale of the company; (iii) our shares of common stock would trade at the Estimated Per Share NAV on a national securities exchange; (iv) a different independent third-party appraiser or other third-party valuation firm would agree with the Estimated Per Share NAV; or (v) the methodology used to estimate our NAV per share would be acceptable to FINRA or comply with ERISA reporting requirements.

The value of our shares will fluctuate over time in response to developments related to individual assets in the portfolio and the management of those assets and in response to the real estate and finance markets. We expect to engage an independent valuation firm to update the Estimated Per Share NAV at least annually.

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Cybersecurity risks and cyber incidents may adversely affect our business by causing a disruption to our operations, a compromise or corruption of our confidential information, and/or damage to our business relationships, all of which could negatively impact our financial results.

We consider a cyber incident to be any adverse event that threatens the confidentiality, integrity or availability of our information resources. These incidents may be an intentional attack or an unintentional event and could involve gaining unauthorized access to our information systems for purposes of misappropriating assets, stealing confidential information, corrupting data or causing operational disruption. The result of these incidents may include disrupted operations, misstated or unreliable financial data, liability for stolen assets or information, increased cybersecurity protection and insurance costs, litigation and damage to our tenant and investor relationships. As our reliance on technology has increased, so have the risks posed to our information systems, both internal and those we have outsourced. There is no guarantee that any processes, procedures and internal controls we have implemented or will implement will prevent cyber intrusions, which could have a negative impact on our financial results, operations, business relationships or confidential information.

We expect that most of our properties will continue to be located in the continental United States and would be affected by economic downturns, as well as economic cycles and risks inherent to that area.

Our properties are concentrated in, and we expect to continue to acquire commercial real estate located in the continental United States; however, we may purchase properties in other jurisdictions. Real estate markets are subject to economic downturns, as they have been in the past, and we cannot predict how economic conditions will impact this market in both the short and long term. Declines in the economy or a decline in the real estate market in the continental United States could hurt our financial performance and the value of our properties. The factors affecting economic conditions in the continental United States real estate market include, but are not limited to: financial performance and productivity of, among others, the publishing, advertising, financial, technology, retail, insurance and real estate industries; business layoffs or downsizing; industry slowdowns; relocations of businesses; changing demographics; increased telecommuting and use of alternative workplaces; infrastructure quality; any oversupply of, or reduced demand for, real estate; concessions or reduced rental rates under new leases for properties where tenants defaulted; increased insurance premiums; and increased interest rates.

Distributions paid from sources other than our cash flows from operations, including from the proceeds of our Offerings, will result in us having fewer funds available for the acquisition of properties and real estate-related investments, which may adversely affect our ability to fund future distributions with cash flows from operations and may adversely affect a stockholder's overall return.

We have previously paid, and may pay in the future, distributions from sources other than from our cash flows from operations. We may pay, and have no limits on the amounts we may pay, distributions from any source, such as the sale of assets and the sale of additional securities. Funding distributions from the sale of assets may affect our ability to generate cash flows. Funding distributions from the sale of additional securities could dilute stockholders' interest in us if we sell shares of our common stock to third party investors. As a result, the return investors may realize on their investment may be reduced and investors who invested in us before we generated significant cash flow may realize a lower rate of return than later investors. Payment of distributions from any of the aforementioned sources could restrict our ability to generate sufficient cash flows from operations, affect our profitability and/or affect the distributions payable upon a liquidity event, any or all of which may have an adverse effect on an investment in us.

Item 1B. Unresolved Staff Comments.

None.

Item 2. Properties.

Our principal executive office is located at 1001 Water Street, Suite 800, Tampa, Florida 33602. As of December 31, 2022, we owned a portfolio of 132 real estate properties, composed of approximately 5,535,000 rentable square feet of commercial spaces, and two undeveloped land parcels. As of December 31, 2022, 118 of our real estate properties were single-tenant and 14 of our real estate properties were multi-tenant. As of December 31, 2022, 99.5% of our rentable square feet was leased, with a weighted average remaining lease term of 9.3 years. As of December 31, 2022, all of our real estate investments are in healthcare properties and undeveloped land parcels.

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Property Statistics

The following table shows the property statistics of our real estate portfolio as of December 31, 2022:

Property Name	MSA/µSA	Date Acquired	Year Constructed	Year Renovated	% Leased	Leased Sq Ft	Encumbrances, $ (in thousands)
Houston Healthcare Facility	Houston-The Woodlands-Sugar Land, TX	07/31/2014	1993	—	100%	13,645	(1)
Cincinnati Healthcare Facility	Cincinnati, OH-KY-IN	10/29/2014	2001	—	100%	14,868	(1)
Winston-Salem Healthcare Facility	Winston-Salem, NC	12/17/2014	2004	—	100%	22,200	(1)
Stoughton Healthcare Facility	Boston-Cambridge-Newton, MA-NH	12/23/2014	1973	1997	100%	180,744	(1)
Fort Worth Healthcare Facility	Dallas-Fort Worth-Arlington, TX	12/31/2014	2014	—	100%	83,464	(1)
Fort Worth Healthcare Facility II	Dallas-Fort Worth-Arlington, TX	12/31/2014	2014	—	100%	8,268	(1)
Winter Haven Healthcare Facility	Lakeland-Winter Haven, FL	01/27/2015	2009	—	100%	7,560	(1)
Overland Park Healthcare Facility	Kansas City, MO-KS	02/17/2015	2014	—	100%	54,568	(1)
Clarion Healthcare Facility	Pittsburgh, PA	06/01/2015	2012	—	100%	33,000	(1)
Webster Healthcare Facility	Houston-The Woodlands-Sugar Land, TX	06/05/2015	2015	—	100%	53,514	(1)
Augusta Healthcare Facility	Augusta-Waterville, ME (µSA)	07/22/2015	2010	—	100%	51,000	(1)
Cincinnati Healthcare Facility II	Cincinnati, OH-KY-IN	07/22/2015	1960	2014	100%	139,428	(1)
Cincinnati Healthcare Facility III	Cincinnati, OH-KY-IN	07/22/2015	2014	—	100%	41,600	(1)
Florence Healthcare Facility	Cincinnati, OH-KY-IN	07/22/2015	2014	—	100%	41,600	(1)
Oakland Healthcare Facility	Augusta-Waterville, ME (µSA)	07/22/2015	2004	—	100%	20,000	(1)
Wyomissing Healthcare Facility	Philadelphia-Camden-Wilmington, PA-NJ-DE-MD	07/24/2015	2007	—	100%	33,217	(1)
Luling Healthcare Facility	Austin-Round Rock, TX	07/30/2015	2003	—	100%	40,901	(1)
Omaha Healthcare Facility	Omaha-Council Bluffs, NE-IA	10/14/2015	2014	—	100%	40,402	(1)
Sherman Healthcare Facility	Sherman-Denison, TX	11/20/2015	2005	2010	100%	57,576	(1)
Sherman Healthcare Facility II	Sherman-Denison, TX	11/20/2015	2005	—	100%	8,055	(1)
Fort Worth Healthcare Facility III	Dallas-Fort Worth-Arlington, TX	12/23/2015	1998	2007/2015	100%	36,800	(1)
Oklahoma City Healthcare Facility	Oklahoma City, OK	12/29/2015	1985	1998/2003	100%	94,076	(1)
Oklahoma City Healthcare Facility II	Oklahoma City, OK	12/29/2015	1994	1999	100%	41,394	(1)
Edmond Healthcare Facility	Oklahoma City, OK	01/20/2016	2002	—	100%	17,700	(1)
Oklahoma City Healthcare Facility III	Oklahoma City, OK	01/27/2016	2006	—	100%	5,000	(1)
Oklahoma City Healthcare Facility IV	Oklahoma City, OK	01/27/2016	2007	—	100%	8,762	(1)
Newcastle Healthcare Facility	Oklahoma City, OK	02/03/2016	1995	1999	100%	7,424	(1)
Oklahoma City Healthcare Facility V	Oklahoma City, OK	02/11/2016	2008	—	100%	43,676	(1)
Rancho Mirage Healthcare Facility	Riverside-San Bernardino-Ontario, CA	03/01/2016	2018	—	100%	47,008	(1)
Oklahoma City Healthcare Facility VI	Oklahoma City, OK	03/07/2016	2007	—	100%	14,676	(1)
Oklahoma City Healthcare Facility VII	Oklahoma City, OK	06/22/2016	2016	—	100%	102,978	(1)
Las Vegas Healthcare Facility	Las Vegas-Henderson-Paradise, NV	06/24/2016	2017	—	100%	56,220	(1)
Oklahoma City Healthcare Facility VIII	Oklahoma City, OK	06/30/2016	1997	2008	100%	62,857	(1)
Marlton Healthcare Facility	Philadelphia-Camden-Wilmington, PA-NJ-DE-MD	11/01/2016	1995	—	100%	89,139	(1)
Grand Rapids Healthcare Facility	Grand Rapids-Wyoming, MI	12/07/2016	2008	—	80%	86,008	(1)
Corpus Christi Healthcare Facility	Corpus Christi, TX	12/22/2016	1992	2016	100%	25,102	(1)
Aurora Healthcare Facility	Chicago-Naperville-Elgin, IL-IN-WI	03/30/2017	2002	—	100%	24,722	(1)
Allen Healthcare Facility	Dallas-Fort Worth-Arlington, TX	03/31/2017	2007	—	100%	42,627	(1)
Austin Healthcare Facility	Austin-Round Rock, TX	03/31/2017	2012	—	100%	66,095	(1)
Beaumont Healthcare Facility	Beaumont-Port Arthur, TX	03/31/2017	1991	—	100%	61,000	(1)
San Antonio Healthcare Facility	San Antonio-New Braunfels, TX	06/29/2017	1984	—	100%	44,746	(1)
Silverdale Healthcare Facility	Bremerton-Silverdale, WA	08/25/2017	2005	—	100%	26,127	(1)
Silverdale Healthcare Facility II	Bremerton-Silverdale, WA	09/20/2017	2007	—	100%	19,184	(1)
Saginaw Healthcare Facility	Saginaw, MI	12/21/2017	2002	—	100%	87,843	(1)
Carrollton Healthcare Facility	Dallas-Fort Worth-Arlington, TX	04/27/2018	2015	—	100%	21,990	(1)
Katy Healthcare Facility	Houston-The Woodlands-Sugar Land, TX	06/08/2018	2015	—	100%	34,296	(1)
Indianola Healthcare Facility	Des Moines-West Des Moines, IA	09/26/2018	2014	—	100%	18,116	(1)
Indianola Healthcare Facility II	Des Moines-West Des Moines, IA	09/26/2018	2011	—	100%	20,990	(1)
Benton Healthcare Facility	Little Rock-North Little Rock-Conway, AR	10/17/2018	1992/1999	2012	100%	104,419	(1)

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Property Name	MSA/µSA	Date Acquired	Year Constructed	Year Renovated	% Leased	Leased Sq Ft	Encumbrances, $ (in thousands)
Benton Healthcare Facility II	Little Rock-North Little Rock-Conway, AR	10/17/2018	1983	—	100%	11,350	(1)
Bryant Healthcare Facility	Little Rock-North Little Rock-Conway, AR	10/17/2018	1995	—	100%	23,450	(1)
Hot Springs Healthcare Facility	Little Rock-North Little Rock-Conway, AR	10/17/2018	2009	—	100%	8,573	(1)
Clive Healthcare Facility	Des Moines-West Des Moines, IA	11/26/2018	2008	—	100%	58,156	(1)
Valdosta Healthcare Facility	Valdosta, GA	11/28/2018	2004	—	100%	24,750	(1)
Valdosta Healthcare Facility II	Valdosta, GA	11/28/2018	1992	—	100%	12,745	(1)
Bryant Healthcare Facility II	Little Rock-North Little Rock-Conway, AR	08/16/2019	2016	—	100%	16,425	(1)
Laredo Healthcare Facility	Laredo, TX	09/19/2019	1998	—	100%	61,677	(1)
Laredo Healthcare Facility II	Laredo, TX	09/19/2019	1998	—	100%	118,132	(1)
Poplar Bluff Healthcare Facility	Poplar Bluff, MO (µSA)	09/19/2019	2013	—	100%	71,519	(1)
Tucson Healthcare Facility	Tucson, AZ	09/19/2019	1998	—	100%	34,009	(1)
Akron Healthcare Facility	Akron, OH	10/04/2019	2012	—	100%	98,705	(1)
Akron Healthcare Facility II	Akron, OH	10/04/2019	2013	—	100%	38,564	(1)
Akron Healthcare Facility III	Akron, OH	10/04/2019	2008	—	100%	54,000	(1)
Alexandria Healthcare Facility	Alexandria, LA	10/04/2019	2007	—	100%	15,600	(1)
Appleton Healthcare Facility	Appleton, WI	10/04/2019	2011	—	100%	7,552	(1)
Austin Healthcare Facility II	Austin-Round Rock, TX	10/04/2019	2006	—	100%	18,275	(1)
Bellevue Healthcare Facility	Green Bay, WI	10/04/2019	2010	—	100%	5,838	(1)
Bonita Springs Healthcare Facility	Cape Coral-Fort Myers, FL	10/04/2019	2002	2005	100%	9,800	(1)
Bridgeton Healthcare Facility	St. Louis, MO-IL	10/04/2019	2012	—	100%	66,914	(1)
Covington Healthcare Facility	New Orleans-Metairie, LA	10/04/2019	1984	—	100%	43,250	(1)
Crestview Healthcare Facility	Crestview-Fort Walton Beach-Destin, FL	10/04/2019	2004	2010	100%	5,685	(1)
Dallas Healthcare Facility	Dallas-Fort Worth-Arlington, TX	10/04/2019	2011	—	100%	62,390	(1)
De Pere Healthcare Facility	Green Bay, WI	10/04/2019	2005	—	100%	7,100	(1)
Denver Healthcare Facility	Denver-Aurora-Lakewood, CO	10/04/2019	1962	2018	100%	131,210	(1)
El Segundo Healthcare Facility	Los Angeles-Long Beach-Anaheim, CA	10/04/2019	2009	—	100%	12,163	(1)
Fairlea Healthcare Facility	Hagerstown-Martinsburg, MD-WV	10/04/2019	1999	—	100%	5,200	(1)
Fayetteville Healthcare Facility	Fayetteville-Springdale-Rogers, AR-MO	10/04/2019	1994	2009	100%	55,740	(1)
Fort Myers Healthcare Facility	Cape Coral-Fort Myers, FL	10/04/2019	1999	—	100%	32,148	(1)
Fort Myers Healthcare Facility II	Cape Coral-Fort Myers, FL	10/04/2019	2010	2022	100%	47,089	(1)
Fort Walton Beach Healthcare Facility	Crestview-Fort Walton Beach-Destin, FL	10/04/2019	2005	—	100%	9,017	(1)
Frankfort Healthcare Facility	Lexington-Fayette, KY	10/04/2019	1993	2019	100%	4,000	(1)
Frisco Healthcare Facility	Dallas-Fort Worth-Arlington, TX	10/04/2019	2010	2020	100%	57,051	(1)
Goshen Healthcare Facility	Elkhart-Goshen, IN	10/04/2019	2010	—	100%	15,462	(1)
Hammond Healthcare Facility	Hammond, LA	10/04/2019	2006	—	100%	63,000	(1)
Hammond Healthcare Facility II	Hammond, LA	10/04/2019	2004	—	100%	23,835	(1)
Harlingen Healthcare Facility	Brownsville-Harlingen, TX	10/04/2019	2007	—	100%	38,111	(1)
Henderson Healthcare Facility	Las Vegas-Henderson-Paradise, NV	10/04/2019	2000	—	100%	6,685	(1)
Houston Healthcare Facility III	Houston-The Woodlands-Sugar Land, TX	10/04/2019	1998	2018	100%	16,217	(1)
Howard Healthcare Facility	Green Bay, WI	10/04/2019	2011	—	100%	7,552	(1)
Jacksonville Healthcare Facility	Jacksonville, FL	10/04/2019	2009	—	100%	13,082	(1)
Lafayette Healthcare Facility	Lafayette, LA	10/04/2019	2004	2005	100%	73,824	(1)
Lakewood Ranch Healthcare Facility	North Port-Sarasota-Bradenton, FL	10/04/2019	2008	—	100%	10,919	(1)
Las Vegas Healthcare Facility II	Las Vegas-Henderson-Paradise, NV	10/04/2019	2007	—	100%	6,963	(1)
Lehigh Acres Healthcare Facility	Cape Coral-Fort Myers, FL	10/04/2019	2002	—	100%	5,746	(1)
Lubbock Healthcare Facility	Lubbock, TX	10/04/2019	2003	—	100%	102,143	(1)
Manitowoc Healthcare Facility	Green Bay, WI	10/04/2019	2003	—	100%	7,987	(1)
Manitowoc Healthcare Facility II	Green Bay, WI	10/04/2019	1964	2010	100%	36,090	(1)
Marinette Healthcare Facility	Green Bay, WI	10/04/2019	2008	—	100%	4,178	(1)
New Bedford Healthcare Facility	Providence-Warwick, RI-MA	10/04/2019	1942	1995	100%	70,657	(1)
New Braunfels Healthcare Facility	San Antonio-New Braunfels, TX	10/04/2019	2007	—	100%	27,971	(1)

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Property Name	MSA/µSA	Date Acquired	Year Constructed	Year Renovated	% Leased	Leased Sq Ft	Encumbrances, $ (in thousands)
North Smithfield Healthcare Facility	Providence-Warwick, RI-MA	10/04/2019	1965	2000	100%	92,944	(1)
Oklahoma City Healthcare Facility IX	Oklahoma City, OK	10/04/2019	2007	—	100%	34,970	(1)
Oshkosh Healthcare Facility	Oshkosh-Neenah, WI	10/04/2019	2010	—	100%	8,717	(1)
Palm Desert Healthcare Facility	Riverside-San Bernardino-Ontario, CA	10/04/2019	2005	—	100%	6,963	(1)
Rancho Mirage Healthcare Facility II	Riverside-San Bernardino-Ontario, CA	10/04/2019	2008	—	100%	7,432	(1)
San Antonio Healthcare Facility III	San Antonio-New Braunfels, TX	10/04/2019	2012	—	100%	50,000	(1)
San Antonio Healthcare Facility IV	San Antonio-New Braunfels, TX	10/04/2019	1987	—	100%	113,136	(1)
San Antonio Healthcare Facility V	San Antonio-New Braunfels, TX	10/04/2019	2017	—	100%	57,929	(1)
Santa Rosa Beach Healthcare Facility	Crestview-Fort Walton Beach-Destin, FL	10/04/2019	2003	—	100%	5,000	(1)
Savannah Healthcare Facility	Savannah, GA	10/04/2019	2014	—	100%	48,184	(1)
Sturgeon Bay Healthcare Facility	Green Bay, WI	10/04/2019	2007	—	100%	3,100	(1)
Victoria Healthcare Facility	Victoria, TX	10/04/2019	2013	—	100%	34,297	(1)
Victoria Healthcare Facility II	Victoria, TX	10/04/2019	1998	—	100%	28,752	(1)
Webster Healthcare Facility II	Houston-The Woodlands-Sugar Land, TX	10/04/2019	2014	2019	100%	373,070	(1)
Wilkes-Barre Healthcare Facility	Scranton–Wilkes-Barre–Hazleton, PA	10/04/2019	2012	—	100%	15,996	(1)
Yucca Valley Healthcare Facility	Riverside-San Bernardino-Ontario, CA	10/04/2019	2009	—	100%	12,240	(1)
Tucson Healthcare Facility II	Tucson, AZ	12/26/2019	2021	—	100%	60,913	(1)
Tucson Healthcare Facility III	Tucson, AZ	12/27/2019	2020	—	100%	20,000	(1)
Grimes Healthcare Facility	Des Moines-West Des Moines, IA	02/19/2020	2018	—	100%	14,669	(1)
Tampa Healthcare Facility	Tampa-St. Petersburg-Clearwater, FL	09/08/2020	2015	—	100%	33,822	(1)
Tucson Healthcare Facility IV	Tucson, AZ	12/22/2020	2022	—	89%	39,967	—
Greenwood Healthcare Facility	Indianapolis-Carmel-Anderson, IN	04/19/2021	2008	2018	100%	53,560	(1)
Clive Healthcare Facility II	Des Moines-West Des Moines, IA	12/08/2021	2008	—	100%	63,224	(1)
Clive Healthcare Facility III	Des Moines-West Des Moines, IA	12/08/2021	2008	—	100%	33,974	(1)
Clive Healthcare Facility IV	Des Moines-West Des Moines, IA	12/08/2021	2009	2018	100%	35,419	(1)
Clive Undeveloped Land	Des Moines-West Des Moines, IA	12/08/2021	—	—	—%	—	—
Clive Undeveloped Land II	Des Moines-West Des Moines, IA	12/08/2021	—	—	—%	—	—
Yukon Healthcare Facility	Oklahoma City, OK	03/10/2022	2020	—	100%	45,624	—
Pleasant Hills Healthcare Facility	Pittsburgh, PA	05/12/2022	1967	—	100%	33,712	—
Prosser Healthcare Facility I	Kennewick-Richland, WA	05/20/2022	2010	—	100%	6,000	—
Prosser Healthcare Facility II	Kennewick-Richland, WA	05/20/2022	2013	2019	100%	9,230	—
Prosser Healthcare Facility III	Kennewick-Richland, WA	05/20/2022	2013	—	100%	5,400	—
Tampa Healthcare Facility II	Tampa-St. Petersburg-Clearwater, FL	07/20/2022	2022	—	100%	87,649	—
Escondido Healthcare Facility	San Diego-Carlsbad, CA	07/21/2022	2021	—	100%	56,800	—
						5,507,777	$	—

(1)Property is contributed to the pool of unencumbered properties of our credit facility. As of December 31, 2022, 124 commercial real estate properties were contributed to the pool of unencumbered properties under our credit facility and we had an outstanding principal balance of $583,000,000.

We believe the properties are adequately covered by insurance and are suitable for their respective intended purposes. Real estate assets, other than land, are depreciated on a straight-line basis over each asset's useful life. Tenant improvements are depreciated on a straight-line basis over the shorter of their respective lease term or expected useful life.

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Leases

Although there are variations in the specific terms of the leases in our portfolio, the following is a summary of the structure of our leases. Generally, the leases of our properties provide for initial terms ranging from 10 to 20 years. As of December 31, 2022, the weighted average remaining lease term of our properties was 9.3 years. The properties generally are leased under net leases pursuant to which the tenant bears responsibility for substantially all property costs and expenses associated with ongoing maintenance and operation, including utilities, property taxes and insurance. Certain leases provide for fixed increases in rent. Generally, the property leases provide the tenant with one or more multi-year renewal options, subject to generally the same terms and conditions as the initial lease term.

Lease expirations of our real properties based on annualized contractual base rent as of December 31, 2022, for each of the next ten years ending December 31 and thereafter, are as follows:

Year of Lease Expiration	Total Number of Leases	Leased Sq Ft	Annualized Contractual Base Rent (in thousands) (1)		Percentage of Annualized Contractual Base Rent
2023	6	26,994	$	607	0.4	%
2024	18	162,001	4,792		2.8	%
2025	13	372,447	9,487		5.6	%
2026	13	202,884	5,837		3.4	%
2027	10	315,340	7,777		4.6	%
2028	10	236,527	5,126		3.0	%
2029	15	498,702	10,485		6.2	%
2030	13	550,814	18,120		10.7	%
2031	12	403,342	16,479		9.7	%
2032	6	174,560	7,005		4.1	%
Thereafter	41	2,564,166	83,655		49.5	%
	157	5,507,777	$	169,370	100.0	%

(1)Annualized contractual base rent is based on contractual base rent from leases in effect as of December 31, 2022.

Indebtedness

For a discussion of our indebtedness, see Note 10—"Credit Facility" to the consolidated financial statements that are a part of this Annual Report on Form 10-K.

Item 3. Legal Proceedings.

We are not aware of any material pending legal proceedings to which we are a party or to which our properties are the subject.

Item 4. Mine Safety Disclosures.

Not applicable.

PART II

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.

Market Information

There is no established public trading market for our common stock. Therefore, a stockholder may not be able to sell our stock at a time or price acceptable to the stockholder, or at all. Unless and until our shares are listed on a national securities exchange, we do not expect that a public market for the shares will develop.

As of December 31, 2022, the offering price for the shares in the DRIP Offering was $8.22 per Class A share, $8.22 per Class I share and $8.22 per Class T share, which is equal to the Estimated Per Share NAV, as approved by the Board and effective on August 25, 2022.

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We will continue to issue shares of Class A common stock, Class I common stock and Class T common stock under the current DRIP Offering until such time as we sell all of the shares registered for sale under the current DRIP Offering, unless we file a new registration statement with the SEC or the current DRIP Offering is terminated by the Board. We will issue such shares at the applicable Estimated Per Share NAV.

In May 2022, all outstanding shares of Class T2 common stock (including associated shares of Class T2 DRIP common stock) were converted into shares of Class I common stock. Stockholders received a confirmation notice when their shares of Class T2 common stock were converted into shares of Class I common stock.

Pursuant to the terms of our charter, certain restrictions are imposed on the ownership and transfer of shares.

To assist the FINRA members and their associated persons that participated in our public offerings of common stock, pursuant to FINRA Rule 5110 and NASD Conduct Rule 2340, we disclose in each annual report distributed to stockholders a per share estimated value of the shares, the method by which it was developed, and the date of the data used to develop the estimated value. In addition, we prepare annual statements of estimated share values to assist fiduciaries of retirement plans subject to the annual reporting requirements of ERISA in the preparation of their reports relating to an investment in our shares. For these purposes, the Estimated Per Share NAV of our common shares was $8.22 as of December 31, 2022. However, as set forth above, there is no public trading market for the shares at this time and stockholders may not receive $8.22 per share if a market did exist.

The Estimated Per Share NAV was approved by the Board, at the recommendation of the Audit Committee, on August 25, 2022, using a methodology that conformed to standard industry practice. In determining the Estimated Per Share NAV, the Board considered information and analyses, including valuation materials that were provided by Cushman & Wakefield of Pennsylvania, LLC, information provided by us and the recommendation of the Audit Committee. See our Current Report on Form 8-K filed with the SEC on August 26, 2022 for additional information regarding Cushman & Wakefield of Pennsylvania, LLC, and its valuation materials and the methodology used to determine the Estimated Per Share NAV.

Stockholder Information

As of March 10, 2023, we had 64,679 stockholders of record. The number of stockholders is based on the records of Computershare Trust Company, N.A., who serves as our registrar and transfer agent.

Distributions

We are taxed and qualify as a REIT for federal income tax purposes. As a REIT, we make distributions each taxable year equal to at least 90% of our REIT taxable income (computed without regard to the dividends paid deduction and excluding capital gains). One of our primary goals is to continue to pay monthly distributions to our stockholders.

Unregistered Sales of Equity Securities

There were no unregistered sales of equity securities during the quarter ended December 31, 2022.

Share Repurchase Program

Prior to the time that our shares are listed on a national securities exchange, if ever, our Amended and Restated Share Repurchase Program, or the SRP, as described below, may provide eligible stockholders with limited, interim liquidity by enabling them to sell shares back to us, subject to restrictions and applicable law. We are not obligated to repurchase shares under our SRP.

We can only repurchase shares due to death and involuntary exigent circumstances in accordance with our SRP, subject in each case to the terms and limitations of the SRP, including, but not limited to, quarterly share limitations, an annual 5.0% share limitation, and DRIP funding limitations. Under our SRP, we may waive certain of the terms and requirements of the SRP in the event of the death of a stockholder who is a natural person, including shares held through an Individual Retirement Account, or IRA, or other retirement or profit-sharing plan, and certain trusts meeting the requirements of the SRP. We may also waive certain of the terms and requirements of the SRP in the event of an involuntary exigent circumstance, as determined by us or any of the executive officers thereof, in our or their sole discretion.

Holding Period. Generally, a stockholder must have beneficially held its Class A shares, Class I shares or Class T shares, as applicable, for at least one year prior to offering them for sale to us through our share repurchase program. A stockholder or a stockholder’s fiduciary, heir or beneficiary may present to us fewer than all of the shares owned for repurchase.

Distribution Reinvestment Plan. In the event that we repurchase all of one stockholder’s shares, any shares that the stockholder purchased pursuant to our DRIP, will be excluded from the one-year holding requirement. In the event that a

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stockholder requests a repurchase of its shares, and such stockholder is participating in the DRIP, the stockholder will be deemed to have notified us, at the time the stockholder submits the repurchase request, that the stockholder is terminating participation in the DRIP and has elected to receive future distributions in cash. This election for cash distributions will continue in effect even if less than all of the stockholder’s shares are accepted for repurchase unless the stockholder notifies us that the stockholder wishes to re-enroll to participate in the DRIP.

Death of a Stockholder. Subject to the conditions and limitations described below, we may waive certain of the terms and requirements of our share repurchase program in the event of the death of a stockholder who is a natural person, including shares held by such stockholder through an IRA or other retirement or profit-sharing plan, and certain trusts meeting the requirements detailed in this program. With regard to trusts, the right to request a repurchase upon death applies upon the death of the settlor of a trust that holds shares, if the trust becomes irrevocable upon the death of the settlor or settlor’s spouse, or the spouse of a settlor of a trust, if the trust became irrevocable upon the death of the settlor and the settlor’s spouse was the beneficiary of the trust, as applicable, after receiving written notice from the fiduciary appointed for the stockholder’s estate, the recipient of the shares through bequest or inheritance, or, in the case of a trust that becomes irrevocable upon the death of the settlor (or previously became irrevocable upon the death of the settlor’s spouse), the then-serving trustee of such trust, who shall be the sole person authorized to request the repurchase on behalf of the trust. We must receive the written repurchase request within 18 months after the death of the stockholder, the date on which a trust became irrevocable due to death, or the date of death of the settlor’s surviving spouse who was the beneficiary of a trust that became irrevocable due to the death of the settlor, as applicable, in order for the requesting party to rely on any of the special treatment described below that may be afforded in the event of death. Such written request must be accompanied by a certified copy of the official death certificate of the stockholder, settlor, and or settlor’s spouse, as applicable. In addition, written requests in connection with shares held in a trust must include an executed Certification of Trust for Repurchase form, pursuant to which the trustee must agree to indemnify and hold our company harmless from and against any liability arising from the repurchase. If spouses are joint registered holders of the shares, the request to repurchase the shares may be made only if both registered holders are deceased. If the stockholder is not a natural person, as in the case of a trust that does not become irrevocable upon the death of the settlor or the settlor’s spouse (as described above in this paragraph), a partnership, a corporation, a limited liability company, or other similar entity, the right of repurchase upon death does not apply.

Qualifying Disability. Subject to the conditions and limitations described within our SRP, we may waive certain of the terms and requirements of our SRP with respect to shares held by a stockholder, including shares held by such stockholder through an IRA or other retirement or profit-sharing plan, with a “Qualifying Disability” as defined in our SRP, after receiving written notice from such stockholder within 18 months from the date that the stockholder becomes subject to the Qualifying Disability; provided that the condition causing the Qualifying Disability was not pre-existing on the date that the stockholder became a stockholder.

Involuntary Exigent Circumstance. The Company or any of its executive officers may, in its or their sole discretion, waive certain of the terms and requirements of our SRP with respect to shares held by a stockholder who is a natural person and certifies in an executed Certification Regarding Exigent Circumstances for Repurchase form, that he or she: (a) has been diagnosed with a condition caused by injury, disease, or illness from which there is no reasonable medical probability of recovery and the stockholder’s life expectancy is less than twenty-four (24) months, as evidenced by a physician certification; and (b) is experiencing financial need, such that, if the repurchase request is not granted, the stockholder would be unable to meet the basic financial obligations to support himself/herself and such stockholder’s dependents, which is referred to as an “Involuntary Exigent Circumstance” in our SRP. Stockholders requesting repurchases due to Involuntary Exigent Circumstance are required to indemnify and hold the Company harmless from and against any liability arising from the repurchase.

Purchase Price. The purchase price for shares repurchased under our SRP will be 100% of the most recent estimated NAV per share of the Class A common stock, Class I common stock or Class T common stock, as applicable (in each case, as adjusted for any stock dividends, combinations, splits, recapitalizations and the like with respect to our common stock). The Board will adjust the estimated NAV per share of each our classes of common stock if we have made one or more special distributions to stockholders. The Board will determine, in its sole discretion, which distributions, if any, constitute a special distribution.

Timing of Share Repurchases. Repurchases of our shares are at our discretion and generally will be made quarterly upon written request to us by the last day of the applicable quarter. Valid repurchase requests will be honored approximately 30 days following the end of the applicable quarter, which we refer to as the “Repurchase Date.” Stockholders may withdraw their repurchase request at any time up to 15 days prior to the Repurchase Date. If a repurchase request is granted, we or our agent will send the repurchase amount to each stockholder or heir, beneficiary or estate of a stockholder on or about the Repurchase Date.

Repurchase Limitations. We will determine whether we have sufficient funds and/or shares available as soon as practicable after the end of each fiscal quarter, but in any event prior to the applicable Repurchase Date.

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a. 5% Share Limitation. During any calendar year, we will not repurchase in excess of 5.0% of the number of shares of common stock outstanding on December 31st of the previous calendar year, or the 5% Share Limitation.

b. Quarterly Share Limitations. We limit the number of shares repurchased each quarter pursuant to our SRP as follows (subject to the DRIP Funding Limitation (as defined below)):

•On the first quarter Repurchase Date, which generally will be January 30 of the applicable year, we will not repurchase in excess of 1.25% of the number of shares outstanding on December 31st of the previous calendar year;

•On the second quarter Repurchase Date, which generally will be April 30 of the applicable year, we will not repurchase in excess of 1.25% of the number of shares outstanding on December 31st of the previous calendar year;

•On the third quarter Repurchase Date, which generally will be July 30 of the applicable year, we will not repurchase in excess of 1.25% of the number of shares outstanding on December 31st of the previous calendar year; and

•On the fourth quarter Repurchase Date, which generally will be October 30 of the applicable year, we will not repurchase in excess of 1.25% of the number of shares outstanding on December 31st of the previous calendar year.

In the event we do not repurchase 1.25% of the number of shares outstanding on December 31st of the previous calendar year in any particular quarter, we will increase the limitation on the number of shares to be repurchased in the next quarter and continue to adjust the quarterly limitations as necessary in accordance with the 5% annual limitation.

c.    DRIP Funding Limitations. We intend to fund our SRP with proceeds we received during the prior year ended December 31 from the sale of shares pursuant to the DRIP. We will limit the amount of DRIP proceeds used to fund share repurchases in each quarter to 25% of the amount of DRIP proceeds received during the previous calendar year, or the DRIP Funding Limitation; provided, however, that if we do not reach the DRIP Funding Limitation in any particular quarter, we will apply the remaining DRIP proceeds to the next quarter Repurchase Date and continue to adjust the quarterly limitations as necessary in order to use all of the available DRIP proceeds for a calendar year, if needed. We cannot guarantee that DRIP proceeds will be sufficient to accommodate all requests made each quarter. The Board may, in its sole discretion, reserve other operating funds to fund the SRP, but is not required to reserve such funds.

As a result of the limitations described in (a) - (c) above, some or all of a stockholder’s shares may not be repurchased. Each quarter, we will process repurchase requests made in connection with the death of a stockholder, or, in our sole discretion, an Involuntary Exigent Circumstance. If we are unable to process all eligible repurchase requests within a quarter due to the limitations described above or in the event sufficient funds are not available, shares will be repurchased as follows: (i) first, pro rata as to repurchases upon the death of a stockholder; and (ii) second, pro rata as to repurchases to stockholders who demonstrate, in our sole discretion, an Involuntary Exigent Circumstance.

If we do not repurchase all of the shares for which repurchase requests were submitted in any quarter, all outstanding repurchase requests will automatically roll over to the subsequent quarter and priority will be given to the repurchase requests in the subsequent quarter as provided above. A stockholder or his or her estate, heir or beneficiary, as applicable, may withdraw a repurchase request in whole or in part at any time up to 15 days prior to the Repurchase Date.

Deadline for Presentment. A stockholder who wishes to have shares repurchased must mail or deliver to us a written request on a form provided by us and executed by the stockholder, its trustee or authorized agent, which we must receive by the last day of the quarter in which the stockholder is requesting a repurchase of his or her shares. The fiduciary of an estate, heir, beneficiary, or trustee of a trust that wishes to have shares repurchased following the death of a stockholder must mail or deliver to us a written request on a form provided by us, including evidence acceptable to us of the death of the stockholder, and executed by the fiduciary of the estate, the heir or beneficiary, or the trustee, as applicable, which we must receive by the last day of the quarter in which the fiduciary of the estate, heir, beneficiary, or trustee is requesting a repurchase of its shares.

No Encumbrances. All shares presented for repurchase must be owned by the stockholder(s) making the presentment, or the party presenting the shares must be authorized to do so by the owner(s) of the shares. Such shares must be fully transferable and not subject to any liens or encumbrances. Upon receipt of a request for repurchase, we may conduct a Uniform Commercial Code search to ensure that no liens are held against the shares. Any costs in conducting the Uniform Commercial Code search will be borne by us.

Account Minimum. In the event any stockholder fails to maintain a minimum balance of $2,000 of Class A shares, Class I shares, Class T shares, or Class T2 shares, we may repurchase all of the shares held by that stockholder at the NAV per share repurchase price in effect on the date we determine that the stockholder has failed to meet the minimum balance.

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Termination, Amendment or Suspension of the Program. Our SRP will immediately terminate if our shares are listed on any national securities exchange. In addition, the Board may, in its sole discretion, suspend (in whole or in part) our SRP at any time and from time to time upon notice to our stockholders and may, in its sole discretion amend or terminate our SRP at any time upon 30 days’ prior notice to our stockholders for any reason it deems appropriate. Because we generally only repurchase shares on a quarterly basis, depending upon when during the quarter the Board makes this determination, it is possible that you would not have any additional opportunities to have your shares repurchased under the prior terms of the program, or at all, upon receipt of the notice. Because share repurchases will be funded with the net proceeds we receive from the sale of shares under our DRIP or other operating funds reserved by the Board in its sole discretion, the discontinuance or termination of the DRIP or the Board’s decision not to reserve other operating funds to fund our SRP would adversely affect our ability to repurchase shares under our SRP. We will notify our stockholders of such developments: (1) in a current report on Form 8-K, an annual report on Form 10-K or a quarterly report on Form 10-Q; or (2) by means of a separate mailing to you.

During the three months ended December 31, 2022, we fulfilled the following repurchase requests pursuant to our SRP:

Period	Total Number of Shares Repurchased	Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans and Programs	Approximate Dollar Value of Shares Available  that may yet be Repurchased under the Program
October 1, 2022 - October 31, 2022	336,322	$	8.22	—	$	—
November 1, 2022 - November 30, 2022	—	$	—	—	$	—
December 1, 2022 - December 31, 2022	—	$	—	—	$	—
Total	336,322			—

During the three months ended December 31, 2022, we repurchased approximately $2,765,000 of Class A shares, Class I shares and Class T shares of common stock.

Item 6. [Reserved]

Information pertaining to Item 6 is not presented in accordance with amendments to Item 301 of Regulation S-K.

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Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our consolidated financial statements and the notes thereto and the other financial information appearing elsewhere in this Annual Report on Form 10-K. The discussion contains forward looking statements that involve risks and uncertainties, such as statements of our plans, objectives, expectations and intentions. Our actual results could differ materially from those anticipated in the forward-looking statements as a result of various factors, including those discussed below and elsewhere in this report, particularly under “Risk Factors” and “Forward-Looking Statements.” All forward-looking statements in this document are based on information available to us as of the date hereof, and we assume no obligation to update any such forward-looking statements.

This section of the Annual Report on Form 10-K generally discusses 2022 and 2021 items and year-to-year comparisons between 2022 and 2021. A discussion of the changes in our financial condition and results of operations for the years ended December 31, 2021, and 2020 may be found in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 of our Annual Report on Form 10-K for the fiscal years ended December 31, 2021 and December 31, 2020.

Overview

We invest in high-quality properties leased to tenants capitalizing on critical and structural economic growth drivers. We are primarily focused on investing in strategic healthcare assets across the continuum of care, with emphasis on lower cost patient settings, which, we believe, typically generate predictable, durable and growing income streams. We may also make other real estate-related investments, which may include equity or debt interests in other real estate entities.

We formerly invested in data center properties. During 2021, our board of directors, or the Board, made a determination to sell our data center properties. On May 19, 2021, we and certain of our wholly-owned subsidiaries entered into the PSA for the sale of up to 29 data center properties owned by us. The Board's determination to sell the data center properties, as well as the execution of the PSA, represented a strategic shift that had a major effect on our results and operations for the periods presented. On July 22, 2021, we completed the sale of our data center segment, comprised of approximately 3,298,000 rentable square feet, for an aggregate sale price of $1,320,000,000, and generated net proceeds of approximately $1,295,367,000. As of December 31, 2021 and subsequent, we have no assets or liabilities related to the data center segment. The operations of the data center segment have been classified as income from discontinued operations on the consolidated statements of comprehensive income for the years ended December 31, 2021 and 2020.

As of December 31, 2022, we owned 132 real estate properties and two undeveloped land parcels.

We raised the equity capital for our real estate investments through our Offerings from May 2014 through November 2018, and we have offered shares pursuant to the DRIP Offerings since November 2017. As of December 31, 2022, we had accepted investors’ subscriptions for and issued approximately 157,508,000 shares of Class A, Class I, Class T and Class T2 common stock in our Offerings, resulting in receipt of gross proceeds of approximately $1,520,086,000, before share repurchases of approximately $135,701,000, selling commissions and dealer manager fees of approximately $96,734,000 and other offering costs of approximately $27,631,000.

Critical Accounting Estimates

The preparation of our consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect reported amounts of assets, liabilities, revenues and expenses. Changes in these estimates and assumptions could have a significant effect on the financial statements. From time to time, we evaluate our estimates based on historical experience and various assumptions that we believe are reasonable under the circumstances. Although our actual results historically have not deviated materially from those determined using estimates, our results of operations or financial condition could differ materially from these estimates under different assumptions or conditions.

We consider our critical accounting estimates to be those used in the determination of the reported amounts and disclosure related to the impairment of long-lived assets.

We review our real estate assets on an asset group basis for impairment. Typically, an individual property constitutes an asset group. We identify an asset group based on the lowest level of identifiable cash flows. In the impairment analysis we must determine whether there are indicators of impairment. For operating properties, these indicators could include a tenant being delinquent or not paying rent, a reduction in our estimated hold period, a significant decline in a property’s leasing percentage, a current period operating loss or negative cash flows combined with a history of losses at the property, a significant decline in lease rates for that property or others in the property’s market, a significant change in the market value of the property, or an adverse change in the financial condition of significant tenants.

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If we determine that an asset has indicators of impairment, we then determine whether the undiscounted cash flows associated with the asset group exceed the carrying amount of the asset group. In calculating the undiscounted net cash flows of an asset group, we use considerable judgement to estimate several inputs. We estimate future rental rates, future capital expenditures, future operating expenses, and market capitalization rates for residual values, among other things. In addition, if there are alternative strategies for the future use of the asset, we assess the probability of each alternative strategy and perform a probability-weighted undiscounted cash flow analysis to assess the recoverability of the asset group. If the carrying value of the asset group exceeds the estimated undiscounted cash flows, an impairment loss is recognized equal to the excess of carrying value over the estimated fair value of the asset group.

In determining the fair value of an asset group, we exercise considerable judgment on several factors. We may determine fair value by using a direct capitalization method, a discounted cash flow method or by utilizing comparable sales information. The direct capitalization method is based on a capitalization rate applied to the underlying asset group's most recent stabilized trailing twelve-month net operating income at the measurement date. The discounted cash flow method is based on estimated future cash flow projections utilizing discount rates, terminal capitalization rates, and planned capital expenditures. We use judgment to determine an appropriate discount rate to apply to the cash flows in the discounted cash flow calculation. We also use judgment in analyzing comparable market information because no two real estate assets are identical in location and price.

The estimates and judgments used in the impairment process are highly subjective and susceptible to frequent change. Significant increases or decreases in any of these inputs, particularly with regards to cash flow projections and discount and capitalization rates, would result in a significantly lower or higher fair value measurement of the real estate assets being assessed. Additionally, changes in economic and operating conditions, including changes in the financial condition of our tenants, and changes to our intent and ability to hold the related asset, that occur after our impairment assessment could impact the assumptions used in that assessment and could result in future charges to earnings if assumptions regarding those investments differ from actual results.

Real Estate Acquisitions and Dispositions in 2022

•We purchased seven healthcare properties, in five separate transactions, comprising approximately 244,000 rentable square feet for an aggregate purchase price of approximately $157,194,000. In addition, we placed one healthcare property into service.

•We sold one land parcel that formerly contained a healthcare property for an aggregate sale price of $24,000,000 and generated net proceeds of $22,701,000.

Factors That May Influence Results of Operations

We are not aware at this time of any material trends or uncertainties, other than national economic conditions and those discussed below and in Part I. Item 1A. “Risk Factors” of this Annual Report on Form 10-K, affecting our real estate properties, that may reasonably be expected to have a material impact, favorable or unfavorable, on revenues or income from the acquisition, management and operation of our properties.

Rental Revenue

The amount of rental revenue generated by our properties depends principally on our ability to maintain the occupancy rates of leased space and to lease available space at existing rental rates. Negative trends in one or more of these factors could adversely affect our rental revenue in future periods. We continually monitor our tenants' ability to meet their lease obligations to pay us rent to determine if any adjustments should be reflected currently. During the year ended December 31, 2022, certain tenants experienced a deterioration in their ability to pay rent in accordance with the contractual terms of their leases. As a result, we ceased recognizing rent on a straight-line basis and have only recorded rent for these tenants to the extent we have received cash. In addition, we wrote off $2,434,000 of previously recorded straight line rent receivable, during the year ended December 31, 2022, as a reduction in rental revenue, because the amounts were determined to be uncollectible. As of December 31, 2022, our real estate properties were 99.5% leased.

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Results of Operations

The results of operations discussed below reflect the operations of our healthcare portfolio since the data centers segment is presented as discontinued operations on the consolidated statements of comprehensive income for all years presented.

Our results of operations are influenced by the timing of acquisitions and the performance of our real estate properties. The following table shows the property statistics of our real estate properties as of December 31, 2022 and 2021:

	December 31,
	2022		2021
Number of real estate properties (1)	132		125
Leased square feet	5,508,000		5,219,000
Weighted average percentage of rentable square feet leased	99.5	%	99.5	%

(1)As of December 31, 2022, we owned 132 real estate properties and two undeveloped land parcels. As of December 31, 2021, we owned 125 real estate properties and two undeveloped land parcels.

The following table summarizes our real estate activity for the years ended December 31, 2022 and 2021:

	Year Ended December 31,
	2022			2021
Real estate properties acquired	7			4
Real estate properties disposed	—		(1)	2
Aggregate purchase price of real estate properties acquired (2)	$	157,194,000		$	69,951,000
Net book value of real estate properties disposed	$	—	(1)	$	12,553,000
Leased square feet of real estate property additions	284,000			247,000

(1)During the year ended December 31, 2022, we disposed of one land parcel that formerly contained a healthcare property.

(2)Includes capitalized acquisition costs associated with transactions determined to be asset acquisitions.

Same Store Properties

This section describes and compares our results of operations for the years ended December 31, 2022 and 2021. We generate substantially all of our revenue from property operations. In order to evaluate our overall portfolio, management analyzes the results of our same store properties. We define "same store properties" as properties that were owned and operated for the entirety of both calendar periods being compared and exclude properties under development, re-development, or classified as held for sale.

By evaluating the results of our same store properties, management is able to monitor the operations of our existing properties for comparable periods to measure the performance of our current portfolio and readily observe the expected effects of our new acquisitions and dispositions on net (loss) income.

Year Ended December 31, 2022 Compared to Year Ended December 31, 2021

The following table represents the breakdown of total rental revenue for the year ended December 31, 2022 compared to the comparable period in 2021 (amounts in thousands).

	Year Ended December 31,
	2022		2021		$ Change		% Change
Same store rental revenue	$	155,323	$	157,438	$	(2,115)	(1.3)	%
Same store tenant reimbursements	9,436		8,848		588		6.6	%
Non-same store rental revenue	13,727		5,649		8,078		143.0	%
Non-same store tenant reimbursements	1,495		802		693		86.4	%
Other operating income	5		101		(96)		(95.0)	%
Total rental revenue	$	179,986	$	172,838	$	7,148	4.1	%

•Same store rental revenue decreased primarily due to a $2.4 million write-off of previously recorded straight-line rent related to tenants, partially offset by base rental increases of $1.0 million for leases indexed to CPI.

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•Non-same store rental revenue increased due to an increase of $8.7 million from the acquisition of properties and an increase of $1.4 million from the placement of development properties in service since January 1, 2021, partially offset by a decrease in non-same store rental revenue due to a decrease of $0.9 million related to the sale of properties since January 1, 2021, and a decrease of $1.1 million attributable to deferred rent from a property under renovation.

•There were no significant changes in same store tenant reimbursements, non-same store tenant reimbursements and other operating income.

Changes in our expenses are summarized in the following table (amounts in thousands):

	Year Ended December 31,
	2022		2021		$ Change		% Change
Same store rental expenses	$	15,627	$	15,216	$	411	2.7	%
Non-same store rental expenses	2,323		2,496		(173)		(6.9)	%
General and administrative expenses	22,079		21,388		691		3.2	%
Depreciation and amortization	77,199		70,259		6,940		9.9	%
Impairment losses	47,424		27,837		19,587		70.4	%
Total expenses	$	164,652	$	137,196	$	27,456	20.0	%
Gain on real estate dispositions	$	460	$	89	$	371	416.9	%

•There were no significant changes in same store rental expenses.

•Non-same store rental expenses decreased due to a decrease of $1.7 million related to the sale of properties since January 1, 2021, which were vacant prior to sale, thus requiring us to incur incrementally more expenses in 2021, partially offset by an increase of $1.6 million related to the acquisition of properties and placement of development properties in service.

•General and administrative expenses increased primarily due to an increase in stock-based compensation of $1.5 million and an increase of $0.8 million in severance payments attributable to our former chief accounting officer, partially offset by a decrease of $1.3 million in transfer agent expenses attributable to changing our transfer agent in August 2021.

•Depreciation and amortization increased primarily due to an increase of $4.3 million from the acquisition of properties, an increase of $0.7 million from the placement of development properties in service since January 1, 2021, and impairments of in-place lease intangibles in the amount of approximately $4.3 million, partially offset by a decrease of $2.4 million from the sale of properties.

•Impairment losses were recorded in the aggregate amount of $47.4 million related to several properties during the year ended December 31, 2022. Impairment losses were recorded in the aggregate amount of $27.8 million related to several properties during the year ended December 31, 2021. The impaired properties for the year ended December 31, 2021 have all been subsequently sold.

Changes in interest and other expense, net, are summarized in the following table (amounts in thousands):

	Year Ended December 31,
	2022		2021		$ Change		% Change
Interest and other expense, net:
Interest on notes payable	$	—	$	4,162	$	(4,162)	(100.0)	%
Interest on credit facility	24,077		33,463		(9,386)		(28.0)	%
Other income, net	(305)		(3,110)		2,805		(90.2)	%
Total interest and other expense, net	$	23,772	$	34,515	$	(10,743)	(31.1)	%

•Interest on notes payable decreased due to the repayment of all of our notes payable related to healthcare properties on July 22, 2021, with proceeds from the Data Center Sale.

•Interest on credit facility decreased $6.7 million primarily due to a reduction in the weighted average outstanding principal balance on our credit facility of $212.0 million, which was paid in 2021 with the proceeds from the Data Center Sale and a decrease of $0.9 million due to a reduction in the weighted average interest rate as a result of entering into the Unsecured Credit Facility (as defined below). In addition, interest on credit facility includes $3.4 million and $5.0 million in loss on extinguishment of debt for the years ended December 31, 2022 and 2021, respectively.

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•Other income, net, primarily consisted of $0.2 million in lease termination settlement income from a former tenant at a disposed property for the year ended December 31, 2022. Other expense, net, primarily consisted of $1.1 million in interest income from notes receivable and $2.6 million in income from a transaction services agreement for the year ended December 31, 2021.

Liquidity and Capital Resources

Our principal uses of funds are for acquisitions of real estate and real estate-related investments, capital expenditures, operating expenses, distributions to, and share repurchases from, stockholders and principal and interest payments on any current and future indebtedness. While interest rates on variable rate debt have increased and we expect will continue to increase globally, we believe our exposure is limited at this time due to our hedging strategy, which has effectively fixed 83% of our outstanding debt as of December 31, 2022, allowing us to reasonably project our liquidity needs. Generally, cash for these items is generated from operations of our current and future investments. Our sources of funds are primarily operating cash flows, funds equal to amounts reinvested in the DRIP, our credit facility and other potential borrowings.

When we acquire a property, we prepare a capital plan that contemplates the estimated capital needs of that investment. In addition to operating expenses, capital needs may also include, for example, costs of refurbishment, tenant improvements or other major capital expenditures. The capital plan also sets forth the anticipated sources of the necessary capital, which may include a line of credit, operating cash generated by the investment, additional equity investments from us, and when necessary, capital reserves. The capital plan for each investment will be adjusted through ongoing, regular reviews of our portfolio or, as necessary, to respond to unanticipated additional capital needs.

Short-term Liquidity and Capital Resources

For at least the next twelve months, we expect our principal demands for funds will be for operating expenses, including our general and administrative expenses, as well as the acquisition of real estate and real estate-related investments and funding of capital improvements and tenant improvements, distributions to and repurchases from stockholders, and interest payments on our credit facility. We expect to meet our short-term liquidity requirements through net cash flows provided by operations, funds equal to amounts reinvested in the DRIP and borrowings on our credit facility and potential other borrowings.

We believe we will have sufficient liquidity available to meet our obligations in a timely manner, under both normal and stressed conditions, for the next twelve months.

Long-term Liquidity and Capital Resources

Beyond the next twelve months, we expect our principal demands for funds will be for costs to acquire additional real estate properties, interest and principal payments on our credit facility, long-term capital investment demands for our real estate properties and our distributions necessary to maintain our REIT status.

We currently expect to meet our long-term liquidity requirements through proceeds from cash flows from operations and borrowings on our credit facility and potential other borrowings.

We expect to pay distributions to our stockholders from cash flows from operations; however, we have used, and may continue to use, other sources to fund distributions, as necessary, such as funds equal to amounts reinvested in the DRIP. To the extent cash flows from operations are lower due to lower-than-expected returns on the properties held or the disposition of properties, distributions paid to stockholders may be lower. We currently expect that substantially all net cash flows from our operations will be used to fund acquisitions, certain capital expenditures identified at acquisition, ongoing capital expenditures, interest and principal payments on outstanding debt and distributions to our stockholders.

Material Cash Requirements

In addition to the cash we need to conduct our normal business operations, we expect to require approximately $22,878,000 in cash over the next twelve months, of which $20,203,000 will be required for the payment of estimated interest on our outstanding debt (calculated based on our effective interest rates as of December 31, 2022) and $2,675,000 related to our various obligations as lessee. We cannot provide assurances, however, that actual expenditures will not exceed these estimates.

As of December 31, 2022, we had approximately $12,917,000 in cash and cash equivalents. For the year ended December 31, 2022, we paid capital expenditures of $8,440,000 that primarily related to the completion of a development property, which was placed into service during the period, and re-developing another real estate property.

As of December 31, 2022, we had material obligations beyond 12 months in the amount of approximately $758,114,000, inclusive of $639,748,000 related to principal and estimated interest payments on our outstanding debt (calculated based on our effective interest rates as of December 31, 2022) and $118,366,000 related to our various obligations as lessee.

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One of our principal liquidity needs is the payment of principal and interest on outstanding indebtedness. As of December 31, 2022, we had $583,000,000 of principal outstanding under our Unsecured Credit Facility. We are required by the terms of certain loan documents to meet certain covenants, such as financial ratios and reporting requirements. As of December 31, 2022, we were in compliance with all such covenants and requirements on our Unsecured Credit Facility (as defined below).

As of December 31, 2022, the aggregate notional amount under our derivative instruments was $485,000,000. We have agreements with each derivative counterparty that contain cross-default provisions; if we default on our indebtedness, then we could also be declared in default on our derivative obligations, resulting in an acceleration of payment of any net amounts due under our derivative contracts. As of December 31, 2022, we were in compliance with all such cross-default provisions.

Debt Service Requirements

Credit Facility

As of December 31, 2022, the maximum commitments available under the Revolving Credit Agreement, were $500,000,000, which may be increased, subject to lender approval, through incremental term loans and/or revolving loan commitments in an aggregate amount not to exceed $1,000,000,000. The maturity date for the Revolving Credit Agreement is February 15, 2026, which, at our election, may be extended for a period of six-months on no more than two occasions, subject to certain conditions, including the payment of an extension fee. The Revolving Credit Agreement was entered into on February 15, 2022, to replace our prior $500,000,000 revolving line of credit, which had a maturity date of April 27, 2022, with an option to extend for one twelve-month period. We did not exercise the option to extend. Upon closing of the Revolving Credit Agreement, we extinguished all commitments associated with the prior revolving line of credit. As of December 31, 2022, the Revolving Credit Agreement had an aggregate outstanding principal balance of $8,000,000.

As of December 31, 2022, the maximum commitments available under the 2024 Term Loan Agreement, were $300,000,000, which may be increased, subject to lender approval, to an aggregate amount not to exceed $600,000,000. The 2024 Term Loan Agreement has a maturity date of December 31, 2024, and, at our election, may be extended for a period of six-months on no more than two occasions, subject to the satisfaction of certain conditions, including the payment of an extension fee. The 2024 Term Loan Agreement was entered into simultaneously with the Revolving Credit Agreement’s execution, on February 15, 2022, to replace our prior term loan, which was paid off in its entirety upon closing of the Revolving Credit Agreement and the 2024 Term Loan Agreement. As of December 31, 2022, the 2024 Term Loan Agreement had an aggregate outstanding principal balance of $300,000,000.

As of December 31, 2022, the maximum commitments available under the 2028 Term Loan Agreement, were $275,000,000, of which $205,000,000 was drawn at closing to pay down our Revolving Credit Agreement in its entirety. The remainder of the commitments were available for three months following the closing date, or the Availability Period, and were available in no more than three subsequent draws with a minimum of $20,000,000 per draw, or the remaining commitments available. After the Availability Period, the undrawn portion was no longer available. If the committed amount was not fully drawn within 60 days of closing, we were required to pay a fee to the lenders, calculated as 0.25% per annum on the average daily amount of the undrawn portion, payable quarterly in arrears, until the earlier of (i) the date when the commitments have been funded in full, or (ii) August 17, 2022. The 2028 Term Loan Agreement may be increased, subject to lender approval, to an aggregate amount not to exceed $500,000,000 and has a maturity date of January 31, 2028. The 2028 Term Loan Agreement is pari passu with our Revolving Credit Agreement and 2024 Term Loan Agreement. On July 12, 2022 and July 20, 2022, we drew $50,000,000 and $20,000,000, respectively, on the 2028 Term Loan Agreement. As of July 20, 2022, the 2028 Term Loan Agreement commitments were fully funded. As of December 31, 2022, the 2028 Term Loan Agreement had an aggregate outstanding principal balance of $275,000,000.

The Unsecured Credit Facility has aggregate commitments available of $1,075,000,000, as of December 31, 2022. Generally, the proceeds of loans made under our Unsecured Credit Facility may be used for acquisition of real estate investments, funding of tenant improvements and leasing commissions with respect to real estate, repayment of indebtedness, funding of capital expenditures with respect to real estate, and general corporate and working capital purposes.

During the year ended December 31, 2022, we drew $70,000,000 on the Revolving Credit Agreement to fund acquisitions and we repaid $57,000,000 on the Revolving Credit Agreement, with proceeds from dispositions and cash flows from operations.

As of December 31, 2022, we had a total pool availability under our Unsecured Credit Facility of $1,075,000,000 and an aggregate outstanding principal balance of $583,000,000; therefore, $492,000,000 was available to be drawn under our Unsecured Credit Facility. We were in compliance with all the financial covenant requirements as of December 31, 2022.

Financing

For these purposes, the fair value of each asset is equal to the purchase price paid for the asset or, if the asset was appraised subsequent to the date of purchase, then the fair value is equal to the value reported in the most recent independent

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appraisal of the asset. Our policies do not limit the amount we may borrow with respect to any individual investment. As of December 31, 2022, our borrowings were approximately 24.3% of the fair value of our real estate-related investments.

Cash Flows

Year Ended December 31, 2022 Compared to Year Ended December 31, 2021

	Year Ended December 31,
(in thousands)	2022		2021		Change		% Change
Net cash provided by operating activities	$	121,675	$	136,942	$	(15,267)	(11.1)	%
Net cash (used in) provided by investing activities	$	(142,812)	$	1,226,842	$	(1,369,654)	(111.6)	%
Net cash provided by (used in) financing activities	$	1,340	$	(1,398,813)	$	1,400,153	(100.1)	%

Cash flows from discontinued operations are not separately disclosed on the consolidated statements of cash flows for the years ended December 31, 2021 and 2020.

Operating Activities

•Net cash provided by operating activities decreased primarily due to us owning fewer properties subsequent to the Data Center Sale on July 22, 2021, partially offset by an increase in rental revenues resulting from the acquisition of properties and placement of development properties in service since January 1, 2021 coupled with a decrease in interest paid as a result of entering into the Unsecured Credit Facility and the pay-off of all our notes payable on July 22, 2021, in connection with the Data Center Sale.

Investing Activities

•Net cash used in investing activities for the year ended December 31, 2022, was due to the purchase of real estate properties and payment of capital expenditures primarily related to the completion of a development property, which was placed into service during the period, and re-developing another real estate property, partially offset by proceeds from the sale of a property. Net cash provided by investing activities for the year ended December 31, 2021, was primarily due to the Data Center Sale and the collection of a note receivable, partially offset by the purchase of real estate properties, payment of capital expenditures related to a data center property and three healthcare properties and consideration paid for the Internalization Transaction.

Financing Activities

•Net cash provided by financing activities for the year ended December 31, 2022, was due to proceeds from our credit facility, partially offset by payments on our credit facility, payments of deferred financing costs as a result of entering into the 2024 Term Loan Agreement and Revolving Credit Agreement on February 15, 2022 and the 2028 Term Loan Agreement on May 17, 2022, repurchases of our common stock under our share repurchase program, distributions to our common stockholders and payment of offering costs on issuance of common stock. Net cash used in financing activities for the year ended December 31, 2021, was due to payments on notes payable and debt extinguishment as a result of the Data Center Sale, payments on our credit facility primarily with proceeds from the Data Center Sale, payments of deferred financing costs, repurchases of our common stock under our share repurchase program, distributions to our common stockholders, including a special cash distribution, and payment of offering costs on issuance of common stock, partially offset by proceeds from our credit facility.

Distributions to Stockholders

We have paid, and may continue to pay, distributions from sources other than from our cash flows from operations. For the year ended December 31, 2022, our cash flows provided by operations of approximately $121,675,000 covered 100% of our ordinary distributions paid (total ordinary distributions were approximately $90,144,000, of which $65,310,000 was cash and $24,834,000 was reinvested in shares of our common stock pursuant to the DRIP) during such period. For the year ended December 31, 2021, our cash flows provided by operations of approximately $136,942,000 covered 100% of our distributions paid (total ordinary distributions were approximately $100,748,000, of which $73,164,000 was cash and $27,584,000 was reinvested in shares of our common stock pursuant to the DRIP) during such period. Additionally, the Board declared a special cash distribution of $1.75 per share of Class A, Class I, Class T and Class T2 common stock. The special cash distribution was funded with the proceeds from the sale of the data center properties on July 22, 2021. The special cash distribution was paid on July 30, 2021 to stockholders of record at the close of business on July 26, 2021, in the aggregate amount of approximately $392,685,000.

We do not currently have any limits on the sources of funding distribution payments to our stockholders. We may pay distributions from any source, such as the sale of assets, the sale of additional securities, and offering proceeds and we do not

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currently have any limits on the amounts we may pay from such sources. Funding distributions from the sale of additional securities could dilute a stockholder's interest in us if we sell shares of our common stock to third party investors. Funding distributions to our stockholders will result in us having less funds available for acquiring properties or real estate-related investments. Our inability to acquire additional properties or real estate-related investments may have a negative effect on our ability to generate sufficient cash flows from operations to pay distributions. As a result, the return investors may realize on their investment may be reduced and investors who invest in us before we generate significant cash flows may realize a lower rate of return than later investors. Payment of distributions from any of the above-mentioned sources could restrict our ability to generate sufficient cash flows from operations, affect our profitability and/or affect the distributions payable upon a liquidity event, any or all of which may have an adverse effect on an investment in us.

For federal income tax purposes, distributions to common stockholders are characterized as ordinary dividends, capital gain distributions, or nontaxable distributions. To the extent that we make a distribution in excess of our current or accumulated earnings and profits, such excess will be a nontaxable return of capital, reducing the tax basis in each U.S. stockholder’s shares. Further, the amount of distributions in excess of a U.S. stockholder’s tax basis in such shares will be taxable as a realized gain.

The following table shows the sources of distributions paid during the years ended December 31, 2022 and 2021 (amounts in thousands):

	Year Ended December 31,
Character of Distributions (1):	2022		2021
Ordinary dividends	40.94	%	27.91	%
Capital gain distributions	—	%	—	%
Nontaxable distributions	59.06	%	72.09	%
Total	100.00	%	100.00	%
	Year Ended December 31,
Character of Special Distribution (1):	2022		2021
Ordinary dividends	—	%	12.39	%
Capital gain distributions	—	%	86.66	%
Nontaxable distributions	—	%	0.95	%
Total	—	%	100.00	%

(1)Attributable to Class A shares, Class I shares, Class T shares and Class T2 shares of common stock.

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The amount of distributions payable to our stockholders is determined by the Board and is dependent on a number of factors, including our funds available for distribution, financial condition, lenders' restrictions and limitations, capital expenditure requirements, corporate law restrictions and the annual distribution requirements needed to maintain our status as a REIT under the Internal Revenue Code of 1986, as amended. The Board must authorize each distribution and may, in the future, authorize lower amounts of distributions or not authorize additional distributions and, therefore, distribution payments are not guaranteed. Additionally, our organizational documents permit us to pay distributions from unlimited amounts of any source, and we may use sources other than operating cash flows to fund distributions, including funds equal to amounts reinvested in the DRIP, which may reduce the amount of capital we ultimately invest in properties or other permitted investments. We have funded distributions with operating cash flows from our properties and funds equal to amounts reinvested in the DRIP. To the extent that we do not have taxable income, distributions paid will be considered a return of capital to stockholders.

The following table shows the sources of distributions paid during the years ended December 31, 2022 and 2021 (amounts in thousands):

	Year Ended December 31,
	2022					2021
Distributions paid in cash - common stockholders	$	65,310				$	465,849	(1)
Distributions reinvested (shares issued)	24,834					27,584
Total distributions	$	90,144				$	493,433
Source of distributions:
Cash flows provided by operations	$	65,310	72	%	(2)	$	73,164		15	%	(2)
Offering proceeds from issuance of common stock pursuant to the DRIP	24,834		28	%	(2)	27,584			5	%	(2)
Proceeds from real estate disposals	—		—	%		392,685			80	%	(2)
Total sources	$	90,144	100	%		$	493,433		100	%

(1)Includes a special cash distribution declared by the Board of $1.75 per share of Class A, Class I, Class T and Class T2 common stock. The special cash distribution was funded with the proceeds from the Data Center Sale on July 22, 2021. The special cash distribution was paid on July 30, 2021, to stockholders of record at the close of business on July 26, 2021, in the aggregate amount of approximately $392,685,000.

(2)Percentages were calculated by dividing the respective source amount by the total sources of distributions.

Total distributions declared but not paid on Class A shares, Class I shares and Class T shares as of December 31, 2022, were approximately $7,719,000 for common stockholders. These distributions were paid on January 6, 2023.

Share Repurchase Program

Our SRP allows for repurchases of shares of our common stock when certain criteria are met. Under the SRP, we can only repurchase shares due to death or involuntary exigent circumstances, subject in each case to the terms and limitations of the SRP, including, but not limited to, quarterly share limitations, an annual 5.0% share limitation and DRIP funding limitations. See Part II, Item 5. "Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities" for more information on the SRP.

During the year ended December 31, 2022, we repurchased 1,123,183 Class A shares, Class I shares and Class T shares of common stock (981,772 Class A shares, 31,666 Class I shares and 109,745 Class T shares), for an aggregate purchase price of approximately $9,217,000 (an average of $8.21 per share). During the year ended December 31, 2021, we repurchased 1,133,901 Class A shares, Class I shares and Class T shares of common stock (1,055,054 Class A shares, 11,836 Class I shares and 67,011 Class T shares), for an aggregate purchase price of approximately $9,528,000 (an average of $8.40 per share).

Commitments and Contingencies

For a discussion of our commitments and contingencies, see Note 17—"Commitments and Contingencies" to the consolidated financial statements that are a part of this Annual Report on Form 10-K.

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Non-GAAP Financial Measures

In the real estate industry, analysts and investors employ certain non-GAAP supplemental financial measures in order to facilitate meaningful comparisons between periods and among peer companies. We believe that these measures are useful to investors to consider because they may assist them to better understand and measure the performance of our business over time and against similar companies. We use the following non-GAAP financial measures: Funds From Operations, or FFO, Core Funds From Operations, or Core FFO, and Adjusted Funds From Operations, or AFFO.

Net (Loss) Income and FFO, Core FFO and AFFO

A description of FFO, Core FFO, and AFFO and reconciliations of these non-GAAP measures to net (loss) income, the most directly comparable GAAP measure, are provided below.

The National Association of Real Estate Investment Trusts, or NAREIT, an industry trade group, has promulgated the FFO measure, which we believe is an appropriate additional measure to reflect the operating performance of a REIT. The use of FFO is recommended by the REIT industry as a supplemental performance measure. FFO is not equivalent to our net (loss) income as determined under GAAP.

We define FFO, consistent with NAREIT’s definition, as net (loss) income (calculated in accordance with GAAP), excluding gains (or losses) from sales of real estate assets and impairments of real estate assets, plus depreciation and amortization of real estate assets, and after adjustments for unconsolidated partnerships and joint ventures. Adjustments for unconsolidated partnerships and joint ventures will be calculated to reflect FFO on the same basis. To date, we do not have any investments in unconsolidated partnerships or joint ventures.

We, along with many of our peers in the real estate industry, consider FFO to be an appropriate supplemental measure of a REIT’s operating performance, because it is based on a net income (loss) analysis of real estate portfolio performance that excludes non-cash items such as real estate depreciation and amortization and real estate impairments, which we believe provides a useful understanding of our performance to the investors and to our management, and when compared to year over year, FFO reflects the impact on our operations from trends in occupancy.

We calculate Core FFO by adjusting FFO to remove the effect of items that are not expected to impact our operating performance on an ongoing basis and consider it to be a useful supplemental measure because it provides investors with additional information to understand our sustainable performance. These include severance arrangements, write offs of previously recorded straight-line rents, amortization of above- and below-market leases (including ground leases) and loss on extinguishment of debt.

We calculate AFFO by adjusting Core FFO for the following items included in the determination of GAAP net (loss) income: deferred rent, current period straight-line rent, discount amortization related to the deferred liability in connection with the Internalization Transaction, amortization of deferred financing costs and stock-based compensation.

Presentation of this information is intended to assist management and investors in comparing the operating performance of different REITs, although it should be noted that not all REITs calculate FFO, Core FFO and AFFO the same way, so comparisons with other REITs may not be meaningful. Furthermore, FFO, Core FFO and AFFO are not necessarily indicative of cash flows available to fund cash needs and should not be considered as an alternative to net (loss) income as an indication of our performance, as an indication of our liquidity, or indicative of funds available for our cash needs, including our ability to make distributions to our stockholders. FFO, Core FFO and AFFO may be useful in assisting management and investors in assessing the sustainability of operating performance in future operating periods. All of our non-GAAP financial measures should be reviewed in conjunction with other measurements as an indication of our performance. The method used to evaluate the value and performance of real estate under GAAP should be considered as a more relevant measure of operating performance and considered more prominent than the non-GAAP financial measures presented here.

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Reconciliation of Net (Loss) Income to FFO, Core FFO and AFFO

The following table presents a reconciliation of net (loss) income attributable to common stockholders, which is the most directly comparable GAAP financial measure, to FFO, Core FFO and AFFO for the years ended December 31, 2022 and 2021 (amounts in thousands):

	Year Ended December 31,
	2022		2021
Net (loss) income attributable to common stockholders	$	(7,978)	$	402,660
Adjustments:
Depreciation and amortization	77,099		81,999
Gain on real estate disposition from continuing operations	(460)		(89)
Gain on real estate dispositions from discontinued operations	—		(395,801)
Impairment losses	47,424		27,837
FFO	$	116,085	$	116,606
Adjustments:
Severance arrangements	889		56
Write off of straight-line rent related to prior periods	2,434		70
Amortization of above (below) market lease intangibles, including ground leases	1,044		(434)
Loss on extinguishment of debt	3,367		28,751
Core FFO	$	123,819	$	145,049
Adjustments:
Deferred rent	1,535		—
Straight-line rental income	(9,695)		(15,665)
Amortization of discount of deferred liability	—		272
Amortization of deferred financing costs	1,679		3,425
Stock-based compensation	4,180		2,379
AFFO	$	121,518	$	135,460

Item 7A. Quantitative and Qualitative Disclosures About Market Risk.

Market risk includes risks that arise from changes in interest rates, foreign currency exchange rates, commodity prices, equity prices and other market changes that affect market sensitive instruments. In pursuing our business plan, the primary market risk to which we are exposed is interest rate risk.

We have obtained variable rate debt financing to fund certain property acquisitions and we are exposed to such changes in the one-month Term SOFR. Loans under the Unsecured Credit Facility may be made as Base Rate Loans or SOFR Loans, at our election, and all of our interest rate swap agreements are indexed to SOFR. Our objectives in managing interest rate risk are to limit the impact of interest rate fluctuations on operations and cash flows, and to lower overall borrowing costs. To achieve these objectives, we will borrow primarily at interest rates with the lowest margins available and, in some cases, with the ability to convert variable interest rates to fixed rates.

As of December 31, 2022, we had 12 interest rate swap agreements outstanding, which mature on various dates from April 2023 to January 2028, with an aggregate notional amount under the swap agreements of $485,000,000. Of the 12 interest rate swap agreements outstanding, three interest rate swap agreements with an aggregate notional amount of $150,000,000 have an effective date of May 1, 2023, and will replace two interest rate swaps with an aggregate notional amount of $150,000,000 that have a maturity date of April 27, 2023. As of December 31, 2022, the aggregate settlement asset value was $29,182,000. The settlement value of these interest rate swap agreements is dependent upon existing market interest rates and swap spreads. As of December 31, 2022, an increase of 50 basis points in the market rates of interest would have resulted in an increase to the settlement asset value of these interest rate swaps to a value of $36,261,000. These interest rate swap agreements were designated as cash flow hedging instruments.

As of December 31, 2022, of the $583,000,000 total principal debt outstanding, $98,000,000 was subject to variable interest rates, indexed to Term SOFR, with an interest rate of 5.5% per annum. As of December 31, 2022, an increase of 50 basis points in the market rates of interest would have resulted in an increase in interest expense of approximately $490,000 per year.

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The following table summarizes our principal debt outstanding related to our credit facility as of December 31, 2022 (amounts in thousands):

	December 31, 2022
Variable rate revolving line of credit	$	8,000
Variable rate term loans fixed through interest rate swaps	485,000
Variable rate term loans	90,000
Total principal debt outstanding (1)	$	583,000

(1)As of December 31, 2022, the weighted average interest rate on our total debt outstanding was 3.4%.

We have entered, and may continue to enter, into additional derivative financial instruments, such as interest rate swaps, in order to mitigate our interest rate risk on a given variable rate financial instrument. To the extent we do, we are exposed to credit risk and market risk. Credit risk is the failure of the counterparty to perform under the terms of the derivative contract. When the fair value of a derivative contract is positive, the counterparty owes us, which creates credit risk for us. When the fair value of a derivative contract is negative, we owe the counterparty and, therefore, it does not possess credit risk. Market risk is the adverse effect on the value of a financial instrument that results from a change in interest rates. We manage the market risk associated with interest rate contracts by establishing and monitoring parameters that limit the types and degree of market risk that may be undertaken. We have not entered, and do not intend to enter, into derivative or interest rate swap transactions for speculative purposes. We may also enter into rate-lock arrangements to lock interest rates on future borrowings.

In addition to changes in interest rates, the value of our future investments will be subject to fluctuations based on changes in local and regional economic conditions and changes in the creditworthiness of tenants, which may affect our ability to refinance our debt, if necessary.

We do not have any foreign operations and thus we are not exposed to foreign currency fluctuation risks.

Item 8. Financial Statements and Supplementary Data.

See the index at Part IV, Item 15. Exhibits and Financial Statement Schedules

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.

None.

Item 9A. Controls and Procedures.

(a) Evaluation of disclosure controls and procedures. We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in our reports pursuant to the Securities Exchange Act of 1934, as amended, or the Exchange Act, is recorded, processed, summarized and reported within the time periods specified in the rules and forms, and that such information is accumulated and communicated to us, including our chief executive officer and chief financial officer, as appropriate, to allow timely decisions regarding required disclosure. In designing and evaluating the disclosure controls and procedures, we recognize that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, as ours are designed to do, and we necessarily were required to apply our judgment in evaluating whether the benefits of the controls and procedures that we adopt outweigh their costs.

As required by Rules 13a-15(b) and 15d-15(b) of the Exchange Act, we conducted an evaluation as of December 31, 2022, under the supervision and with the participation of our management, including our chief executive officer and chief financial officer, of the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act). Based on this evaluation, our chief executive officer and chief financial officer concluded that our disclosure controls and procedures, as of December 31, 2022, were effective at a reasonable assurance level.

(b) Management’s Report on Internal Control over Financial Reporting. Our management is responsible for establishing and maintaining adequate internal control over our financial reporting, as such term is defined in Exchange Act Rules 13a-15(f) and 15d-15(f). Internal control over financial reporting is a process to provide reasonable assurance regarding the reliability of our financial reporting and the preparation of financial statements for external purposes in accordance with GAAP. Because of its inherent limitations, internal control is not intended to provide absolute assurance that a misstatement of our financial statements would be prevented or detected. Under the supervision, and with the participation, of our management, including our chief executive officer and chief financial officer, we conducted an evaluation of the effectiveness of our internal control over financial reporting based on the framework in Internal Control-Integrated Framework issued in 2013 by the Committee of

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Sponsoring Organizations of the Treadway Commission, or the Original Framework. Based on our evaluation under the Original Framework, our management concluded that our internal control over financial reporting was effective as of December 31, 2022.

This annual report does not include an attestation report of our independent registered public accounting firm regarding internal control over financial reporting. Management’s report was not subject to attestation by our independent registered public accounting firm pursuant to the permanent deferral adopted by the Securities and Exchange Commission that permits us to provide only management’s report in this annual report.

(c) Changes in internal control over financial reporting. There have been no changes in our internal controls over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act) that occurred during the three months ended December 31, 2022, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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Item 9B. Other Information.

None.

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections.

Not applicable.

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PART III

Item 10. Directors, Executive Officers and Corporate Governance.

The information required by this Item will be presented in our definitive proxy statement for our 2023 annual meeting of stockholders, which is expected to be filed with the SEC within 120 days after December 31, 2022, and is incorporated herein by reference.

Our Board has adopted a Code of Business Conduct and Ethics that is applicable to all members of our Board, our officers and our employees. The policy may be located on our Investor website at https://investors.silarealtytrust.com by clicking on “About Us,” and then on “Governance Documents.” If, in the future, we amend, modify or waive a provision in the Code of Business Conduct and Ethics, we may, rather than filing a Current Report on Form 8-K, satisfy the disclosure requirement by posting such information on our website as necessary.

Item 11. Executive Compensation.

The information required by this Item will be presented in our definitive proxy statement for our 2023 annual meeting of stockholders, which is expected to be filed with the SEC within 120 days after December 31, 2022, and is incorporated herein by reference.

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.

The information required by this Item will be presented in our definitive proxy statement for our 2023 annual meeting of stockholders, which is expected to be filed with the SEC within 120 days after December 31, 2022, and is incorporated herein by reference.

Item 13. Certain Relationships and Related Transactions, and Director Independence.

The information required by this Item will be presented in our definitive proxy statement for our 2023 annual meeting of stockholders, which is expected to be filed with the SEC within 120 days after December 31, 2022, and is incorporated herein by reference.

Item 14. Principal Accounting Fees and Services.

The information required by this Item will be presented in our definitive proxy statement for our 2023 annual meeting of stockholders, which is expected to be filed with the SEC within 120 days after December 31, 2022, and is incorporated herein by reference.

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PART IV

Item 15. Exhibits and Financial Statement Schedules.

The following documents are filed as part of this Annual Report:

(a)(1) Consolidated Financial Statements:

The index of the consolidated financial statements contained herein is set forth on page F-1 hereof.

(a)(2) Financial Statement Schedules:

The financial statement schedules are listed in the index of the consolidated financial statements on page F-1 hereof.

No additional financial statement schedules are presented since the required information is not present or not present in amounts sufficient to require submission of the schedule or because the information required is disclosed in the Consolidated Financial Statements and notes thereto.

(a)(3) Exhibits:

The exhibits listed on the Exhibit Index are included, or incorporated by reference, in this Annual Report.

(b) Exhibits:

See Item 15(a)(3) above.

(c) Financial Statement Schedules:

See Item 15(a)(2) above.

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INDEX TO CONSOLIDATED FINANCIAL STATEMENTS

OF SILA REALTY TRUST, INC.

		Page
Consolidated Financial Statements
	Report of Independent Registered Public Accounting Firm (KPMG LLP, Tampa, FL, Auditor ID: 185)	F-2
	Consolidated Balance Sheets as of December 31, 2022 and 2021	F-4
	Consolidated Statements of Comprehensive Income for the Years Ended December 31, 2022, 2021 and 2020	F-5
	Consolidated Statements of Stockholders' Equity for the Years Ended December 31, 2022, 2021 and 2020	F-6
	Consolidated Statements of Cash Flows for the Years Ended December 31, 2022, 2021 and 2020	F-7
	Notes to Consolidated Financial Statements	F-8
Financial Statement Schedules
	Schedule III — Real Estate Assets and Accumulated Depreciation	S-1

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Report of Independent Registered Public Accounting Firm

To the Stockholders and Board of Directors

Sila Realty Trust, Inc.:

Opinion on the Consolidated Financial Statements

We have audited the accompanying consolidated balance sheets of Sila Realty Trust, Inc. and subsidiaries (the Company) as of December 31, 2022 and 2021, the related consolidated statements of comprehensive income, stockholders’ equity, and cash flows for each of the years in the three-year period ended December 31, 2022, and the related notes and financial statement schedule III (collectively, the consolidated financial statements). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2022 and 2021, and the results of its operations and its cash flows for each of the years in the three-year period ended December 31, 2022, in conformity with U.S. generally accepted accounting principles.

Basis for Opinion

These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of a critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Evaluation of real estate for impairment

As discussed in Notes 2 and 3 to the consolidated financial statements, the Company assesses the recoverability of the carrying value of its real estate for impairment whenever events or changes in circumstances indicate that such amounts may not be recoverable. If the carrying amount of a real estate asset group exceeds its estimated undiscounted future cash flows, an impairment loss is recognized for the amount by which the carrying amount of the asset group exceeds its estimated fair value. The Company recognized impairment losses of $47,424,000 during the year ended December 31, 2022, a portion of which related to real estate. The real estate balance was $1,880,082,000 as of December 31, 2022.

We identified the evaluation of real estate for impairment as a critical audit matter. Subjective and challenging auditor judgment was required to evaluate certain assumptions used in the impairment tests, including the terminal capitalization rates used to estimate the undiscounted cash flows and the sales prices of comparable properties used to estimate the fair value.

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The following are the primary procedures we performed to address this critical audit matter. We evaluated the design of certain internal controls related to the Company’s real estate impairment process, including controls related to the assumptions noted above. For certain properties, we performed sensitivity analyses over terminal capitalization rates to assess the impact of changes in that assumption to the undiscounted cashflows. In addition, for certain properties we involved valuation professionals with specialized skills and knowledge, who assisted in (1) assessing terminal capitalization rates used by the Company to estimate the undiscounted cash flows by comparing them to publicly available market data for comparable entities, and (2) evaluating the sales prices of comparable properties used by the Company to estimate the fair value, including adjustments to such transactions, by comparing them to publicly available market data for an independent selection of sales of similar properties.

/s/ KPMG LLP

We have served as the Company’s auditor since 2014.

Tampa, Florida

March 16, 2023

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SILA REALTY TRUST, INC.

CONSOLIDATED BALANCE SHEETS

(in thousands, except share data)

	December 31, 2022		December 31, 2021
ASSETS
Real estate:
Land	$	163,419	$	163,992
Buildings and improvements, less accumulated depreciation of $209,118 and $165,784, respectively	1,716,663		1,648,685
Construction in progress	—		14,628
Total real estate, net	1,880,082		1,827,305
Cash and cash equivalents	12,917		32,359
Acquired intangible assets, less accumulated amortization of $90,239 and $71,067, respectively	167,483		181,639
Goodwill	21,710		23,284
Right-of-use assets	37,443		24,033
Other assets	100,167		66,365
Assets held for sale	—		22,570
Total assets	$	2,219,802	$	2,177,555
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Credit facility, net of deferred financing costs of $2,412 and $3,226, respectively	580,588		496,774
Accounts payable and other liabilities	30,619		39,597
Acquired intangible liabilities, less accumulated amortization of $5,923 and $4,444, respectively	11,946		12,962
Lease liabilities	41,554		26,394
Liabilities held for sale	—		698
Total liabilities	664,707		576,425
Stockholders’ equity:
Preferred stock, $0.01 par value per share, 100,000,000 shares authorized; none issued and outstanding	—		—
Common stock, $0.01 par value per share, 510,000,000 shares authorized; 241,425,332 and 238,226,119 shares issued, respectively; 226,255,969 and 224,179,939 shares outstanding, respectively	2,263		2,242
Additional paid-in capital	2,024,176		2,004,404
Distributions in excess of accumulated earnings	(499,334)		(400,669)
Accumulated other comprehensive income (loss)	27,990		(4,847)
Total stockholders’ equity	1,555,095		1,601,130
Total liabilities and stockholders’ equity	$	2,219,802	$	2,177,555

The accompanying notes are an integral part of these consolidated financial statements.

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SILA REALTY TRUST, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(in thousands, except share data and per share amounts)

	Year Ended December 31,
	2022		2021		2020
Revenue:
Rental revenue	$	179,986	$	172,838	$	165,781
Expenses:
Rental expenses	17,950		17,712		16,397
General and administrative expenses	22,079		21,388		15,471
Internalization transaction expenses	—		—		3,640
Asset management fees	—		—		12,604
Depreciation and amortization	77,199		70,259		69,849
Impairment losses	47,424		27,837		—
Total expenses	164,652		137,196		117,961
Gain on real estate disposition	460		89		3,142
Interest and other expense, net	23,772		34,515		42,025
(Loss) income from continuing operations	(7,978)		1,216		8,937
Income from discontinued operations	—		401,444		27,839
Net (loss) income attributable to common stockholders	$	(7,978)	$	402,660	$	36,776
Other comprehensive income (loss) - unrealized gain (loss) on interest rate swaps, net	32,837		15,597		(15,740)
Comprehensive income attributable to common stockholders	$	24,859	$	418,257	$	21,036
Weighted average number of common shares outstanding:
Basic	225,320,043		223,325,293		221,436,617
Diluted	225,320,043		224,293,339		221,622,444
Net (loss) income per common share attributable to common stockholders:
Basic:
Continuing operations	$	(0.03)	$	—	$	0.04
Discontinued operations	—		1.80		0.13
Net (loss) income attributable to common stockholders	$	(0.03)	$	1.80	$	0.17
Diluted:
Continuing operations	$	(0.03)	$	—	$	0.04
Discontinued operations	—		1.79		0.13
Net (loss) income attributable to common stockholders	$	(0.03)	$	1.79	$	0.17

The accompanying notes are an integral part of these consolidated financial statements.

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SILA REALTY TRUST, INC.

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

(in thousands, except share data)

	Common Stock
	No. of Shares	Par Value		Additional Paid-in Capital		Distributions in Excess of Accumulated Earnings		Accumulated Other Comprehensive (Loss) Income		Total Stockholders’ Equity
Balance, December 31, 2021	224,179,939	$	2,242	$	2,004,404	$	(400,669)	$	(4,847)	$	1,601,130
Issuance of common stock under the distribution reinvestment plan	3,026,326	30		24,804		—		—		24,834
Vesting of restricted stock	172,887	—		—		—		—		—
Stock-based compensation	—	2		4,178		—		—		4,180
Other offering costs	—	—		(4)		—		—		(4)
Repurchase of common stock	(1,123,183)	(11)		(9,206)		—		—		(9,217)
Distributions to common stockholders	—	—		—		(90,687)		—		(90,687)
Other comprehensive income	—	—		—		—		32,837		32,837
Net loss	—	—		—		(7,978)		—		(7,978)
Balance, December 31, 2022	226,255,969	$	2,263	$	2,024,176	$	(499,334)	$	27,990	$	1,555,095

	Common Stock
	No. of Shares	Par Value		Additional Paid-in Capital		Distributions in Excess of Accumulated Earnings		Accumulated Other Comprehensive Loss		Total Stockholders’ Equity
Balance, December 31, 2020	222,045,522	$	2,220	$	1,983,361	$	(311,264)	$	(20,444)	$	1,653,873
Issuance of common stock under the distribution reinvestment plan	3,243,363	33		27,551		—		—		27,584
Vesting of restricted stock	24,955	—		—		—		—		—
Stock-based compensation	—	—		2,379		—		—		2,379
Distribution and servicing fees	—	—		639		—		—		639
Other offering costs	—	—		(9)		—		—		(9)
Repurchase of common stock	(1,133,901)	(11)		(9,517)		—		—		(9,528)
Distributions to common stockholders	—	—		—		(492,065)		—		(492,065)
Other comprehensive income	—	—		—		—		15,597		15,597
Net income	—	—		—		402,660		—		402,660
Balance, December 31, 2021	224,179,939	$	2,242	$	2,004,404	$	(400,669)	$	(4,847)	$	1,601,130

	Common Stock
	No. of Shares	Par Value		Additional Paid-in Capital		Distributions in Excess of Accumulated Earnings		Accumulated Other Comprehensive Loss		Total Stockholders’ Equity		Noncontrolling Interests		Total Equity
Balance, December 31, 2019	221,912,714	$	2,219	$	1,981,848	$	(240,946)	$	(4,704)	$	1,738,417	$	2	$	1,738,419
Issuance of common stock under the distribution reinvestment plan	3,531,178	35		30,518		—		—		30,553		—		30,553
Vesting of restricted stock	10,500	—		—		—		—		—		—		—
Stock-based compensation	—	—		437		—		—		437		—		437
Purchase of noncontrolling interest	—	—		—		—		—		—		(2)		(2)
Distribution and servicing fees	—	—		51		—		—		51		—		51
Other offering costs	—	—		(40)		—		—		(40)		—		(40)
Repurchase of common stock	(3,408,870)	(34)		(29,453)		—		—		(29,487)		—		(29,487)
Distributions to common stockholders	—	—		—		(107,094)		—		(107,094)		—		(107,094)
Other comprehensive loss	—	—		—		—		(15,740)		(15,740)		—		(15,740)
Net income	—	—		—		36,776		—		36,776		—		36,776
Balance, December 31, 2020	222,045,522	$	2,220	$	1,983,361	$	(311,264)	$	(20,444)	$	1,653,873	$	—	$	1,653,873

The accompanying notes are an integral part of these consolidated financial statements.

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SILA REALTY TRUST, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

	Year Ended December 31,
	2022		2021		2020
Cash flows from operating activities:
Net (loss) income attributable to common stockholders	$	(7,978)	$	402,660	$	36,776
Adjustments to reconcile net (loss) income attributable to common stockholders to net cash provided by operating activities:
Depreciation and amortization	77,199		82,018		105,476
Amortization of deferred financing costs	1,679		3,425		3,884
Amortization of above- and below-market leases	484		(1,098)		(4,680)
Other amortization expenses	2,302		3,269		1,190
Gain on real estate disposition from continuing operations	(460)		(89)		(3,142)
Gain on real estate dispositions of discontinued operations	—		(395,801)		—
Loss on extinguishment of debt	3,367		28,751		—
Impairment losses	47,424		27,837		—
Straight-line rental income, net of write-offs	(7,261)		(15,665)		(21,323)
Stock-based compensation	4,180		2,379		437
Changes in operating assets and liabilities:
Accounts payable and other liabilities	(170)		(4,521)		(3,795)
Other assets	909		3,777		(1,985)
Net cash provided by operating activities	121,675		136,942		112,838
Cash flows from investing activities:
Investments in real estate	(157,194)		(71,462)		(16,135)
Consideration paid for the internalization transaction	—		(15,000)		(25,000)
Proceeds from real estate disposition	22,822		1,308,009		28,542
Capital expenditures	(8,440)		(25,285)		(28,797)
Change in deposits and other costs for investments in real estate	—		(120)		(26)
Collection of notes receivable	—		30,700		—
Net cash (used in) provided by investing activities	(142,812)		1,226,842		(41,416)
Cash flows from financing activities:
Payments on notes payable	—		(453,422)		(3,923)
Proceeds from credit facility	845,000		15,000		140,000
Payments on credit facility	(762,000)		(453,000)		(110,000)
Payments for extinguishment of debt	(4)		(29,244)		—
Payments of deferred financing costs	(6,937)		(444)		(715)
Repurchase of common stock	(9,217)		(9,528)		(29,487)
Offering costs on issuance of common stock	(192)		(2,326)		(3,099)
Distributions to common stockholders	(65,310)		(465,849)		(76,517)
Purchase of noncontrolling interests	—		—		(2)
Net cash provided by (used in) financing activities	1,340		(1,398,813)		(83,743)
Net change in cash, cash equivalents and restricted cash	(19,797)		(35,029)		(12,321)
Cash, cash equivalents and restricted cash - Beginning of year	32,880		67,909		80,230
Cash, cash equivalents and restricted cash - End of year	$	13,083	$	32,880	$	67,909
Supplemental cash flow disclosure:
Interest paid, net of interest capitalized of $44, $395 and $669, respectively	$	17,361	$	38,558	$	55,129
Supplemental disclosure of non-cash transactions:
Common stock issued through distribution reinvestment plan	$	24,834	$	27,584	$	30,553
Change in accrued distributions to common stockholders	$	543	$	(1,368)	$	24
Change in accounts payable and other liabilities related to capital expenditures and investments in real estate	$	(3,705)	$	(243)	$	2,752
Right-of-use assets obtained in exchange for new lease liabilities	$	15,305	$	625	$	3,914
Origination of note receivable related to real estate disposition	$	—	$	—	$	28,000
Deferred internalization transaction purchase price	$	—	$	—	$	14,674

The accompanying notes are an integral part of these consolidated financial statements.

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SILA REALTY TRUST, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2022

Note 1—Organization and Business Operations

Sila Realty Trust, Inc., or the Company, is a Maryland corporation, headquartered in Tampa, Florida, that has elected, and currently qualifies, to be taxed as a real estate investment trust, or a REIT, under the Internal Revenue Code of 1986, as amended, or the Code, for federal income tax purposes. The Company invests in high-quality properties leased to long-term tenants. The Company is primarily focused on investing in strategic healthcare assets across the continuum of care, with emphasis on lower cost patient settings, which, the Company believes, typically generate predictable, durable and growing income streams. The Company may also make other real estate-related investments, which may include equity or debt interests in other real estate entities.

Substantially all of the Company’s business is conducted through Sila Realty Operating Partnership, LP, a Delaware limited partnership, or the Operating Partnership. The Company is the sole general partner of the Operating Partnership and directly owns 100% of the Operating Partnership.

The Company formerly invested in data center properties and during the second quarter of 2021, the Company's board of directors, or the Board, made a determination to sell the Company's data center properties. On May 19, 2021, the Company and certain of its wholly-owned subsidiaries entered into a purchase and sale agreement, or the PSA, for the sale of 29 data center properties owned by the Company, which constituted the entirety of the Company's data center segment. The decision of the Board to sell the data center properties, as well as the execution of the PSA, represented a strategic shift that had a major effect on the Company's results and operations. On July 22, 2021, the Company completed the sale of its data center segment, or the Data Center Sale, for an aggregate sale price of $1,320,000,000, and generated net proceeds of approximately $1,295,367,000. Concurrently, the Board declared a special cash distribution of $1.75 per share of Class A, Class I, Class T and Class T2 shares of common stock. The special cash distribution was funded with the proceeds from the Data Center Sale. The special cash distribution was paid on July 30, 2021 to stockholders of record at the close of business on July 26, 2021, in an aggregate amount of approximately $392,685,000. As a result of the Data Center Sale, the Company had no assets or liabilities related to the data center segment as of December 31, 2021, and subsequent. The operations of the data center segment have been classified as income from discontinued operations on the consolidated statements of comprehensive income for the years ended December 31, 2021 and 2020.

Except as the context otherwise requires, the “Company” refers to Sila Realty Trust, Inc., the Operating Partnership and their wholly-owned subsidiaries.

Note 2—Summary of Significant Accounting Policies

The summary of significant accounting policies presented below is designed to assist in understanding the Company’s consolidated financial statements. Such consolidated financial statements and the accompanying notes thereto are the responsibility of management. These accounting policies conform to U.S. generally accepted accounting principles, or GAAP, in all material respects, and have been consistently applied in preparing the consolidated financial statements.

Principles of Consolidation and Basis of Presentation

The accompanying consolidated financial statements include the accounts of the Company, the Operating Partnership, and their wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation.

Use of Estimates

The preparation of the consolidated financial statements and accompanying notes in conformity with GAAP requires the Company to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. These estimates are made and evaluated on an ongoing basis using information that is currently available as well as various other assumptions believed to be reasonable under the circumstances. Actual results could differ from those estimates.

Restricted Cash

Restricted cash consists of cash held in escrow accounts for tenant and capital improvements in accordance with the respective tenants' lease agreements. Restricted cash is reported in other assets, in the accompanying consolidated balance sheets.

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The following table presents a reconciliation of the beginning of year and end of year cash, cash equivalents and restricted cash reported within the consolidated balance sheets to the totals shown in the consolidated statements of cash flows (amounts in thousands):

	Year Ended December 31,
	2022		2021		2020
Beginning of year:
Cash and cash equivalents	$	32,359	$	53,174	$	69,342
Restricted cash	521		14,735		10,888
Cash, cash equivalents and restricted cash	$	32,880	$	67,909	$	80,230
End of year:
Cash and cash equivalents	$	12,917	$	32,359	$	53,174
Restricted cash	166		521		14,735
Cash, cash equivalents and restricted cash	$	13,083	$	32,880	$	67,909

Investment in Real Estate

Real estate costs related to the acquisition, development, construction and improvement of properties are capitalized. Repair and maintenance costs are expensed as incurred and significant replacements and improvements are capitalized. Repair and maintenance costs include all costs that do not extend the useful life of the real estate assets. The Company considers the period of future benefit of an asset in determining the appropriate useful life. Real estate assets, other than land, are depreciated on a straight-line basis over each asset’s useful life. The Company anticipates the estimated useful lives of its assets by class as follows:

Buildings and improvements	15 – 40 years
Tenant improvements	Shorter of lease term or expected useful life
Furniture, fixtures, and equipment	3 – 10 years

Allocation of Purchase Price of Real Estate

Upon the acquisition of real estate properties, the Company evaluates whether the acquisition is a business combination or an asset acquisition. For both business combinations and asset acquisitions, the Company allocates the purchase price of properties to acquired tangible assets, consisting of land, buildings and improvements, and acquired intangible assets and liabilities, consisting of the value of above-market and below-market leases and the value of in-place leases. For asset acquisitions, the Company capitalizes transaction costs and allocates the purchase price using a relative fair value method allocating all accumulated costs. For business combinations, the Company expenses transaction costs incurred and allocates the purchase price based on the estimated fair value of each separately identifiable asset and liability. For the year ended December 31, 2022, all of the Company's acquisitions were determined to be asset acquisitions.

The fair value of the tangible assets of an acquired property (which includes land, buildings and improvements) is determined by valuing the property as if it were vacant, and the “as-if-vacant” value is then allocated to land and buildings and improvements based on management’s determination of the relative fair value of these assets.

The amount allocated to in-place leases includes an estimate of direct costs associated with obtaining a new tenant and opportunity costs associated with lost rentals that are avoided by acquiring an in-place lease. These lease intangibles are amortized to depreciation and amortization expense over the remaining terms of the respective leases. If a lease were to be terminated prior to its stated expiration, all unamortized amounts of in-place lease assets relating to that lease would be expensed.

The amounts allocated to above-market and below-market leases are recorded based on the present value of the difference between: (i) the contractual amounts to be paid pursuant to the in-place leases and (ii) an estimate of current market lease rates for the corresponding leases, measured over a period equal to the remaining non-cancelable term of the lease including any fixed rate bargain renewal periods, with respect to a below-market lease. These above-market and below market amounts are amortized as an adjustment of rental revenue over the remaining terms of the respective leases. If a lease were to be terminated prior to its stated expiration, all unamortized amounts of above-market and below-market lease values related to that lease would be recorded as an adjustment to rental revenue.

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Held for Sale

The Company classifies a real estate property as held for sale upon satisfaction of all of the following criteria: (i) management commits to a plan to sell the property; (ii) the property is available for immediate sale in its present condition, subject only to terms that are usual and customary for sales of such properties; (iii) there is an active program to locate a buyer; (iv) the sale of the property is probable and transfer of the asset is expected to be completed within one year; (v) the property is being actively marketed for sale; and (vi) actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn.

Upon the determination to classify a property as held for sale, the Company ceases depreciation and amortization on the real estate property held for sale, as well as the amortization of any related intangible assets. Such properties are recorded at the lesser of the carrying value or estimated fair value less estimated costs to sell.

Impairments

The Company continually monitors events and changes in circumstances that could indicate that the carrying amounts of its real estate assets may not be recoverable. When indicators of potential impairment suggest that the carrying value of real estate assets may not be recoverable, the Company assesses the recoverability of the asset group by estimating whether the Company will recover the carrying value of the asset group through its undiscounted future cash flows, including eventual disposition. Based on this analysis, if the Company does not believe that it will be able to recover the carrying value of the asset group, an impairment charge will be recorded to the extent that the carrying value exceeds the estimated fair value of the asset group.

When developing estimates of expected future cash flows, the Company makes certain assumptions regarding future market rental rates subsequent to the expiration of current lease arrangements, property operating expenses, terminal capitalization and discount rates, probability weighting of potential uses of the property, sale prices of comparable properties, required tenant improvements and the number of years the property will be held for investment. The use of alternative assumptions in the future cash flow analysis could result in a different determination of the property’s future cash flows and a different conclusion regarding the existence of an impairment, the extent of such loss, if any, as well as the carrying value of the real estate assets.

In addition, we determine fair value by using a direct capitalization method, a discounted cash flow method using the assumptions noted above, or by utilizing comparable market information based on the view of a market participant. The use of alternative assumptions in these approaches could result in a different determination of the property’s estimated fair value and a different conclusion regarding the existence of an impairment, the extent of such loss, if any, as well as the carrying value of the real estate assets.

The Company accounts for goodwill in accordance with Accounting Standards Codification, or ASC, 350, Intangibles - Goodwill and Other, and allocates its goodwill to its reporting units, which have been determined to be at the individual property level. Goodwill has an indefinite life and is not amortized.

The Company evaluates goodwill for impairment at least annually, as of the last day of each year, or upon the occurrence of a triggering event. A triggering event is an event or circumstance that would more-likely-than-not indicate that the fair value of a reporting unit is below its carrying value.

The Company has the option to perform a qualitative assessment to determine if a quantitative impairment test is necessary. Under a qualitative assessment, the impairment analysis for goodwill represents an evaluation of whether it is more-likely-than-not the reporting unit's fair value is less than its carrying value, including goodwill. If a qualitative analysis indicates that it is more-likely-than-not that the estimated carrying value of a reporting unit, including goodwill, exceeds its fair value, the Company performs the quantitative analysis. The quantitative analysis consists of estimating the fair value of each reporting unit using discounted projected future cash flows and comparing those estimated fair values with the carrying values, which include the allocated goodwill. If the estimated fair value is less than the carrying value, the Company would then recognize a goodwill impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value, not to exceed the total amount of goodwill allocated to that reporting unit.

Deferred Financing Costs

Deferred financing costs are loan fees, legal fees and other third-party costs associated with obtaining and further modifying financing. These costs are amortized over the terms of the respective financing agreements using the effective interest method. Deferred financing costs related to the term loan portion of the credit facility are recorded as a reduction of the related debt on the accompanying consolidated balance sheets. Deferred financing costs related to the revolving line of credit are recorded in other assets, net, in the accompanying consolidated balance sheets.

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Fair Value

ASC 820, Fair Value Measurements and Disclosures, or ASC 820, defines fair value, establishes a framework for measuring fair value in accordance with GAAP and expands disclosures about fair value measurements. ASC 820 emphasizes that fair value is intended to be a market-based measurement, as opposed to a transaction-specific measurement.

Fair value is defined by ASC 820 as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Depending on the nature of the asset or liability, various techniques and assumptions can be used to estimate the fair value. Assets and liabilities are measured using inputs from three levels of the fair value hierarchy, as follows:

Level 1—Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. An active market is defined as a market in which transactions for the assets or liabilities occur with sufficient frequency and volume to provide pricing information on an ongoing basis.

Level 2—Inputs other than quoted prices for similar assets and liabilities in active markets that are observable for the asset or liability (i.e., interest rates, yield curves, etc.), and inputs that are derived principally from or corroborated by observable market data correlation or other means (market corroborated inputs).

Level 3—Unobservable inputs, only used to the extent that observable inputs are not available, reflect the Company’s assumptions about the pricing of an asset or liability.

Revenue Recognition and Tenant Receivables

The majority of the Company's revenue is derived from rental revenue, which is accounted for in accordance with ASC 842, Leases, or ASC 842. Under ASC 842, rental revenue is recognized on a straight-line basis over the term of the related lease (including rent holidays). For lease arrangements where it is not probable that the Company will collect all or substantially all of the remaining lease payments under the term of the lease, rental revenue is limited to the lesser of the rental revenue that would be recognized on a straight-line basis or the lease payments that have been collected from the lessee. Differences between rental revenue recognized and amounts contractually due under the lease agreements are credited or charged to straight-line rent receivable. Tenant reimbursements, which are comprised of additional amounts recoverable from tenants for common area maintenance expenses and certain other recoverable expenses, are recognized when the services are provided and the performance obligations are satisfied.

Share Repurchase Program

The Company’s Amended and Restated Share Repurchase Program, or the SRP, allows for repurchases of shares of the Company’s common stock upon meeting certain criteria. The SRP provides that all repurchases during any calendar year, including those redeemable upon death or a "Qualifying Disability" (as defined in the Company's SRP) of a stockholder, be limited to those that can be funded with equivalent proceeds raised from the DRIP during the prior calendar year and other operating funds, if any, as the Board, in its sole discretion, may reserve for this purpose.

Repurchases of shares of the Company’s common stock are at the sole discretion of the Board, provided, however, that the Company limits the number of shares repurchased during any calendar year to 5.0% of the total number of shares of common stock outstanding as of December 31st of the previous calendar year. The SRP is subject to terms and limitations, including, but not limited to, quarterly share limitations, an annual 5.0% share limitation and DRIP funding limitations and any amendments to the plan. In addition, the Board, in its sole discretion, may suspend (in whole or in part) the SRP at any time, and may amend, reduce, terminate or otherwise change the SRP upon 30 days' prior notice to the Company’s stockholders for any reason it deems appropriate.

The Company will currently only repurchase shares due to death and involuntary exigent circumstances in accordance with the SRP, subject in each case to the terms and limitations of the SRP. Under the SRP, the Company may waive certain of the terms and requirements of the SRP in the event of the death of a stockholder who is a natural person, including shares held through an Individual Retirement Account or other retirement or profit-sharing plan, and certain trusts meeting the requirements of the SRP. The Company may also waive certain of the terms and requirements of the SRP in the event of an involuntary exigent circumstance, as determined by the Company or any of the executive officers thereof, in its or their sole discretion.

Distribution Policy

In order to maintain its status as a REIT, the Company is required to make distributions each taxable year equal to at least 90% of its REIT taxable income, computed without regard to the dividends paid deduction and excluding capital gains. To the extent funds are available, the Company intends to continue to pay regular distributions to stockholders. Distributions are paid to stockholders of record as of the applicable record dates. Distributions to stockholders are determined by the Board and are dependent upon a number of factors, including funds available for the payment of distributions, financial condition, the timing

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of property acquisitions, capital expenditure requirements, and annual distribution requirements in order to maintain the Company’s status as a REIT.

Stock-based Compensation

On March 6, 2020, the Board approved the Amended and Restated 2014 Restricted Share Plan, or the A&R Incentive Plan, pursuant to which the Company has the authority and power to grant awards of restricted shares of its Class A common stock to its directors, officers and employees. The Company accounts for its stock awards in accordance with ASC 718-10, Compensation—Stock Compensation. ASC 718-10 requires that compensation cost for all stock awards be calculated and amortized over the service period (generally equal to the vesting period). For performance-based awards, compensation costs are recognized over the service period if it is probable that the performance condition will be satisfied, with changes of the assessment at each reporting period and recording the effect of the change in the compensation cost as a cumulative catch-up adjustment. The compensation costs for restricted stock are recognized based on the fair value of the restricted stock awards at grant date. Forfeitures are accounted for as they occur.

Earnings Per Share

The Company calculates basic earnings per share by dividing net (loss) income attributable to common stockholders for the period by the weighted average shares of its common stock outstanding for that period. Diluted earnings per share is computed based on the weighted average number of shares outstanding and all potentially dilutive securities. Shares of non-vested restricted common stock and Performance DSUs give rise to potentially dilutive shares of common stock.

Reportable Segments

ASC 280, Segment Reporting, establishes standards for reporting financial and descriptive information about an entity’s reportable segments. As of December 31, 2022 and December 31, 2021, 100% of the Company's consolidated revenues from continuing operations were generated from real estate investments in healthcare properties. The Company’s chief operating decision maker evaluates operating performance of healthcare properties on an individual property level, which are aggregated into one reportable segment due to their similar economic characteristics.

Derivative Instruments and Hedging Activities

As required by ASC 815, Derivatives and Hedging, or ASC 815, the Company records all derivative instruments at fair value as assets and liabilities on its consolidated balance sheets. The accounting for changes in the fair value of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship and further, on the type of hedging relationship. For those derivative instruments that are designated and qualify as hedging instruments, a company must designate the hedging instrument, based upon the exposure being hedged, as a fair value hedge, cash flow hedge or a hedge of a net investment in a foreign operation.

In accordance with the fair value measurement guidance in Accounting Standards Update, or ASU, 2011-04, Fair Value Measurement, the Company made an accounting policy election to measure the credit risk of its derivative financial instruments that are subject to master netting agreements on a net basis by counterparty portfolio.

The Company is exposed to variability in expected future cash flows that are attributable to interest rate changes in the normal course of business. The Company’s primary strategy in entering into derivative contracts is to add stability to future cash flows by managing its exposure to interest rate fluctuations. The Company utilizes derivative instruments, including interest rate swaps, to effectively convert some of its variable rate debt to fixed rate debt. The Company does not enter into derivative instruments for speculative purposes.

In accordance with ASC 815, the Company designates interest rate swap contracts as cash flow hedges of floating-rate borrowings. For derivative instruments that are designated and qualify as cash flow hedges, the gains or losses on the derivative instruments are reported as other comprehensive income (loss) - unrealized gain (loss) on interest rate swaps, net in the consolidated statements of comprehensive income and are reclassified into earnings in the same line item associated with the forecasted transaction in the same period during which the hedged transactions affect earnings.

Income Taxes

The Company currently qualifies and is taxed as a REIT under Sections 856 through 860 of the Code. Accordingly, it will generally not be subject to corporate U.S. federal or state income tax to the extent that it makes qualifying distributions to stockholders, and provided it satisfies, on a continuing basis, through actual investment and operating results, the REIT requirements, including certain asset, income, distribution and stock ownership tests. If the Company fails to qualify as a REIT, it would be subject to U.S. federal, state and local income taxes and may be precluded from qualifying as a REIT for the subsequent four taxable years following the year in which it lost its REIT qualification, unless the Internal Revenue Service grants the Company relief under certain statutory provisions. Accordingly, failure to qualify as a REIT could have a material adverse impact on the results of operations and amounts available for distribution to stockholders.

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The dividends paid deduction of a REIT for qualifying dividends paid to its stockholders is computed using the Company’s taxable income as opposed to net income reported in the consolidated financial statements. Taxable income, generally, will differ from net income reported in the consolidated financial statements because the determination of taxable income is based on tax provisions and not financial accounting principles.

The Company has concluded that there was no impact related to uncertain tax positions from results of operations of the Company for the years ended December 31, 2022, 2021 and 2020. The earliest tax year currently subject to examination is 2019.

Reclassifications

During the current year, the Company has determined that certain expenses, previously presented within general and administrative expenses, are more closely related to the operations of its properties. As a result, these amounts have been reclassified to rental expenses for all prior periods to conform to the current period presentation.

Note 3—Real Estate Investments

2022 Real Estate Property Acquisitions

During the year ended December 31, 2022, the Company purchased seven real estate properties in five separate transactions, or the 2022 Acquisitions, which were each determined to be asset acquisitions. The Company allocated the purchase price of the 2022 Acquisitions to tangible assets, consisting of land, building and improvements, tenant improvements, and acquired intangible assets and liabilities, consisting of in-place and above and below market leases, based on the relative fair value method of allocating all accumulated costs.

The following table summarizes the consideration transferred for the 2022 Acquisitions during the year ended December 31, 2022:

Property Description	Date Acquired	Ownership Percentage	Consideration Transferred (amount in thousands)
Yukon Healthcare Facility	03/10/2022	100%	$	19,554
Pleasant Hills Healthcare Facility	05/12/2022	100%	14,303
Prosser Healthcare Facilities (1)	05/20/2022	100%	8,593
Tampa Healthcare Facility II	07/20/2022	100%	51,259
Escondido Healthcare Facility	07/21/2022	100%	63,485
Total			$	157,194

(1)     The Prosser Healthcare Facilities consist of three healthcare properties.

The following table summarizes the Company's purchase price allocation of the 2022 Acquisitions during the year ended December 31, 2022 (amounts in thousands):

	Total
Land	$	2,646
Building and improvements	136,938
Tenant improvements	4,840
In-place leases	12,779
Above-market leases	454
Total assets acquired	157,657
Below-market leases	(463)
Net assets acquired	$	157,194

Acquisition costs associated with transactions determined to be asset acquisitions are capitalized. The Company capitalized acquisition costs of approximately $617,000 related to the 2022 Acquisitions, which are included in the Company's allocation of the real estate acquisitions presented above.

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2022 Real Estate Property Disposition

On February 10, 2022, the Company sold one land parcel that formerly contained a healthcare property, or the 2022 Disposition, for a sale price of $24,000,000 and generated net proceeds of $22,701,000. For the year ended December 31, 2022, the Company recognized a gain on sale of $460,000, which is presented in gain on real estate disposition in the consolidated statements of comprehensive income.

Investment Risk Concentrations

As of December 31, 2022, the Company had one exposure to geographic concentration that accounted for greater than 10.0% of rental revenue for the year ended December 31, 2022. Real estate investments located in the Houston-The Woodlands-Sugar Land, Texas metropolitan statistical area accounted for 11.0% of rental revenue for the year ended December 31, 2022.

As of December 31, 2022, the Company had one exposure to tenant concentration that accounted for greater than 10.0% of rental revenue for the year ended December 31, 2022. The leases with tenants at properties under the common control of Post Acute Medical, LLC and its affiliates accounted for 15.2% of rental revenue for the year ended December 31, 2022.

Impairments of Real Estate, Goodwill, Acquired Intangible Assets and Acquired Intangible Liabilities

During the year ended December 31, 2022, the Company determined that triggering events occurred at several of its properties as a result of changes in market conditions and its tenants experiencing financial difficulties. As a result, the Company recorded impairment losses on real estate, including goodwill, in the aggregate amount of $47,424,000 related to its healthcare properties. In addition, during the year ended December 31, 2022, the Company recorded an impairment of in-place lease intangible assets in the amount of approximately $4,345,000. The fair values of these properties were determined based on the guidance in ASC 820, Fair Value Measurement. These impairments were allocated to the asset groups, for each respective property, on a pro-rata basis, which included land, buildings and improvements, and their related acquired intangible assets.

During the year ended December 31, 2021, the Company recorded impairment losses on real estate, including goodwill, in the aggregate amount of $27,837,000 related to one healthcare property held for use, one healthcare property classified as held for sale and one land parcel that formerly contained a healthcare property classified as held for sale. The fair value of the properties with impairment charges during the year ended December 31, 2021, were determined based on the guidance in ASC 820, Fair Value Measurement. These impairments were allocated to the asset groups, for each respective property, on a pro-rata basis, which included land, buildings and improvements, and their related acquired intangible assets. The impaired properties for the year ended December 31, 2021 have all been subsequently sold.

No impairment losses were recorded on real estate or goodwill during the year ended December 31, 2020. During the year ended December 31, 2020, the Company recognized impairments of in-place lease intangible assets in the amount of $1,504,000 and above-market lease intangible assets in the amount of approximately $344,000.

Impairments on real estate and goodwill are recorded as impairment losses in the accompanying consolidated statements of comprehensive income. Impairments of the in-place leases are included in depreciation and amortization in the accompanying consolidated statements of comprehensive income. Impairments of the above-market leases are recorded as an adjustment to rental revenue in the accompanying consolidated statements of comprehensive income.

In addition, during the year ended December 31, 2020, the Company recognized impairments of lease intangibles of $1,215,000 related to a data center tenant, which is included in income from discontinued operations in the accompanying consolidated statements of comprehensive income.

The following table summarizes the rollforward of goodwill for the years ended December 31, 2022 and 2021 (amounts in thousands):

	Year Ended December 31,
	2022		2021
Balance at beginning of year	$	23,284	$	23,955
Impairment losses	(1,574)		(671)
Balance at end of year	$	21,710	$	23,284

Note 4—Held for Sale and Discontinued Operations

On August 30, 2021, the Company entered into a purchase and sale agreement for the sale of one land parcel that formerly contained a healthcare property. The purchase and sale agreement required that the structures on the healthcare property be demolished prior to the sale. The structures on the property were demolished and the property consisted solely of land as of

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December 31, 2021. The Company classified the land as held for sale as of December 31, 2021. The Company sold the land held for sale on February 10, 2022.

The following table presents the major classes of the assets and liabilities held for sale as presented separately in the condensed consolidated balance sheet as of December 31, 2021 (amounts in thousands):

	December 31, 2021
Assets:
Real estate:
Land	$	22,241
Total real estate, net	22,241
Other assets, net	329
Assets held for sale	$	22,570
Liabilities:
Accounts payable and other liabilities	698
Liabilities held for sale	$	698

The operations reflected in income from discontinued operations (which consisted solely of the Company's former data center segment) on the consolidated statements of comprehensive income for the years ended December 31, 2021 and 2020, were as follows (amounts in thousands):

	Year Ended December 31,
	2021		2020
Revenue:
Rental revenue	$	57,903	$	110,755
Lease termination revenue	7,075		—
Total revenue	64,978		110,755
Expenses:
Rental expenses	15,737		28,346
Asset management fees	—		5,310
Depreciation and amortization	11,759		35,634
Total expenses	27,496		69,290
Interest and other expense, net (1)	31,839		13,626
Income from discontinued operations	5,643		27,839
Gain on real estate dispositions	395,801		—
Net income from discontinued operations attributable to common stockholders	$	401,444	$	27,839

(1)    Interest expense attributable to discontinued operations for the years ended December 31, 2021 and December 31, 2020 was $31,856,000 and $13,741,000, respectively, which related to notes payable on certain data center properties. On July 22, 2021, in connection with the Data Center Sale, the Company paid off all data center and healthcare related notes payable, with an outstanding principal balance of $450,806,000 at the time of repayment and incurred approximately $23,738,000 of debt extinguishment costs related to the data center properties.

Capital expenditures on a cash basis for the years ended December 31, 2021, and 2020 were $2,763,000 and $3,945,000, respectively, related to properties classified within discontinued operations.

There were no significant non-cash operating or investing activities for the properties classified within discontinued operations for the year ended December 31, 2021. Significant non-cash operating activities for properties classified within discontinued operations were $764,000 for the year ended December 31, 2020, which related to accrued utilities. There were no significant non-cash investing activities for the properties classified within discontinued operations for the year ended December 31, 2020.

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Note 5—Acquired Intangible Assets, Net

Acquired intangible assets, net, consisted of the following as of December 31, 2022 and 2021 (amounts in thousands, except weighted average remaining life amounts):

	December 31, 2022		December 31, 2021
In-place leases, net of accumulated amortization of $83,788 and $66,579, respectively (with a weighted average remaining life of 8.9 years and 9.5 years, respectively)	$	155,365	$	168,012
Above-market leases, net of accumulated amortization of $6,451 and $4,488, respectively (with a weighted average remaining life of 7.9 years and 8.8 years, respectively)	12,118		13,627
	$	167,483	$	181,639

The aggregate weighted average remaining life of the acquired intangible assets was 8.8 years and 9.5 years as of December 31, 2022 and 2021, respectively.

Amortization of acquired intangible assets was $27,389,000, $23,157,000 and $23,876,000 for the years ended December 31, 2022, 2021 and 2020, respectively. Amortization of in-place leases is included in depreciation and amortization, and amortization of above-market leases is recorded as an adjustment to rental revenue in the accompanying consolidated statements of comprehensive income.

Estimated amortization expense on the acquired intangible assets as of December 31, 2022, for each of the next five years ending December 31 and thereafter, is as follows (amounts in thousands):

Year	Amount
2023	$	22,221
2024	21,195
2025	19,204
2026	17,503
2027	15,926
Thereafter	71,434
	$	167,483

Note 6—Acquired Intangible Liabilities, Net

Acquired intangible liabilities, net, consisted of the following as of December 31, 2022 and 2021 (amounts in thousands, except weighted average remaining life amounts):

	December 31, 2022		December 31, 2021
Below-market leases, net of accumulated amortization of $5,923 and $4,444, respectively (with a weighted average remaining life of 8.4 years and 9.3 years, respectively)	$	11,946	$	12,962

Amortization of below-market leases was $1,479,000, $1,322,000 and $1,207,000 for the years ended December 31, 2022, 2021 and 2020, respectively. Amortization of below-market leases is recorded as an adjustment to rental revenue in the accompanying consolidated statements of comprehensive income.

Estimated amortization of the acquired intangible liabilities as of December 31, 2022, for each of the next five years ending December 31 and thereafter, are as follows (amounts in thousands):

Year	Amount
2023	$	1,494
2024	1,494
2025	1,494
2026	1,475
2027	1,450
Thereafter	4,539
	$	11,946

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Note 7—Leases

Lessor

Rental Revenue

The Company’s real estate properties are leased to tenants under operating leases with varying terms. Typically, the leases have provisions to extend the terms of the lease agreements. The Company retains substantially all of the risks and benefits of ownership of the real estate properties leased to tenants.

Future rent to be received from the Company's investments in real estate assets under the terms of non-cancellable operating leases in effect as of December 31, 2022, for each of the next five years ending December 31 and thereafter, are as follows (amounts in thousands):

Year	Amount
2023	$	172,907
2024	174,299
2025	170,346
2026	163,441
2027	159,797
Thereafter	938,204
Total	$	1,778,994

Lessee

The Company is subject to various non-cancellable operating ground lease agreements on which certain of its properties reside. In addition, the Company has non-cancellable corporate-related operating leases.

The Company's operating leases do not provide implicit interest rates. In order to calculate the present value of the remaining operating payments, the Company used incremental borrowing rates, or IBRs, adjusted for a number of factors. The determination of an appropriate IBR involves multiple inputs and judgments. The Company determined its IBRs considering the general economic environment, term of the underlying leases, and various financing and asset specific adjustments to ensure the IBRs are appropriate for the intended use of the underlying operating leases.

The Company's right-of-use assets classified as operating leases are recorded in right-of-use assets on the consolidated balance sheets.

The future rent payments, discounted by the Company's IBRs, under non-cancellable leases in effect as of December 31, 2022, for each of the next five years ending December 31 and thereafter, are as follows (amounts in thousands):

Year	Operating
2023	$	2,675
2024	2,746
2025	2,768
2026	2,715
2027	2,681
Thereafter	107,456
Total undiscounted rental payments	121,041
Less imputed interest	(79,487)
Total lease liabilities	$	41,554
Weighted average IBR	5.5		%
Weighted average remaining lease term	37.5 years

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The following table provides details of the Company's total lease costs for the years ended December 31, 2022, 2021 and 2020 (amounts in thousands):

		Year Ended December 31,
	Location in Consolidated Statements of Comprehensive Income	2022		2021		2020
Operating lease costs:
Ground lease costs (1)	Rental expenses	$	2,246	$	1,846	$	1,741
Ground lease costs (2)	Income from discontinued operations	—		414		880
Corporate operating lease costs	General and administrative expenses	741		1,129		264
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases		$	531	$	1,067	$	270

(1)The Company receives reimbursements from tenants for certain operating ground leases, which are recorded as rental revenue in the accompanying consolidated statements of comprehensive income.

(2)Amount relates to lease costs attributable to operating ground leases related to data center properties disposed of in the Data Center Sale on July 22, 2021.

Note 8—Other Assets

Other assets consisted of the following as of December 31, 2022 and 2021 (amounts in thousands):

	December 31, 2022		December 31, 2021
Deferred financing costs, related to the revolver portion of the credit facility, net of accumulated amortization of $889 and $8,332, respectively	$	3,178	$	482
Leasing commissions, net of accumulated amortization of $167 and $121, respectively	775		780
Restricted cash	166		521
Tenant receivables	1,736		1,851
Straight-line rent receivable	62,457		55,725
Prepaid and other assets	3,865		4,835
Derivative assets	27,990		2,171
	$	100,167	$	66,365

Amortization of deferred financing costs related to the revolver portion of the credit facility for the years ended December 31, 2022, 2021, and 2020 was $1,087,000, $1,430,000 and $1,206,000, respectively, which was recorded as interest and other expense, net, in the accompanying consolidated statements of comprehensive income.

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Note 9—Accounts Payable and Other Liabilities

Accounts payable and other liabilities consisted of the following as of December 31, 2022 and 2021 (amounts in thousands):

	December 31, 2022		December 31, 2021
Accounts payable and accrued expenses	$	5,387	$	9,409
Accrued interest expense	1,941		1,626
Accrued property taxes	2,421		2,913
Accrued personnel costs	3,940		4,198
Distribution and servicing fees	—		182
Distributions payable to stockholders	7,719		7,355
Performance DSUs distributions payable	573		394
Tenant deposits	877		802
Deferred rental income	7,761		7,100
Derivative liabilities	—		5,618
	$	30,619	$	39,597

Note 10—Credit Facility

The Company's outstanding credit facility as of December 31, 2022 and 2021 consisted of the following (amounts in thousands):

	Weighted Average Contractual Rate	December 31, 2022		December 31, 2021
Variable rate revolving line of credit	5.47%	$	8,000	$	—
Variable rate term loans fixed through interest rate swaps	2.95%	485,000		400,000
Variable rate term loans	5.47%	90,000		100,000
Total credit facility, principal amount outstanding	3.37%	583,000		500,000
Unamortized deferred financing costs related to the term loan credit facility		(2,412)		(3,226)
Total credit facility, net of deferred financing costs		$	580,588	$	496,774

Significant activities regarding the credit facility during the year ended December 31, 2022, include:

•On February 15, 2022, the Company, the Operating Partnership and certain of the Company's subsidiaries, entered into a senior unsecured revolving credit agreement, or the Revolving Credit Agreement, with Truist Bank, as Administrative Agent for the lenders, for aggregate commitments available of up to $500,000,000, which may be increased, subject to lender approval, through incremental term loans and/or revolving loan commitments in an aggregate amount not to exceed $1,000,000,000. The maturity date for the Revolving Credit Agreement is February 15, 2026, which, at the Company's election, may be extended for a period of six-months on no more than two occasions, subject to certain conditions, including a payment of an extension fee. The Revolving Credit Agreement was entered into to replace the Company's prior $500,000,000 revolving line of credit, which had a maturity date of April 27, 2022, with the option to extend for one twelve-month period. The Company did not exercise the option to extend. Upon closing of the Revolving Credit Agreement, the Company extinguished all commitments associated with the prior revolving line of credit. Simultaneously with the Revolving Credit Agreement’s execution, on February 15, 2022, the Company, the Operating Partnership, and certain of the Company's subsidiaries, entered into a senior unsecured term loan agreement, or the 2024 Term Loan Agreement, with Truist Bank, as Administrative Agent for the lenders. The 2024 Term Loan Agreement was fully funded at closing, and is made up of aggregate commitments of $300,000,000, which may be increased, subject to lender approval, to an aggregate amount not to exceed $600,000,000. The 2024 Term Loan Agreement has a maturity date of December 31, 2024, and, at the Company's election, may be extended for a period of six-months on no more than two occasions, subject to the satisfaction of certain conditions, including a payment of an extension fee. The 2024 Term Loan Agreement was entered into to replace the Company's prior term loan, which was paid off in its entirety upon closing of the Revolving Credit Agreement and the 2024 Term Loan Agreement.

•In connection with the repayment of our prior credit facility, the Company recognized a loss on extinguishment of debt of $3,367,000 during the year ended December 31, 2022, which included loan costs in the amount of $4,000 and accelerated

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unamortized debt issuance costs of $3,363,000. The loss on extinguishment of debt was recognized in interest and other expense, net, in the accompanying condensed consolidated statements of comprehensive income.

•On April 8, 2022, the Company entered into five interest rate swap agreements, two of which have an effective date of May 2, 2022 and an aggregate notional amount of $85,000,000, and three of which have an effective date of May 1, 2023 and an aggregate notional amount of $150,000,000.

•On May 17, 2022, the Company, the Operating Partnership and certain of the Company’s subsidiaries, entered into a new senior unsecured term loan agreement, or the 2028 Term Loan Agreement, with Truist Bank, as Administrative Agent for the lenders, for aggregate commitments of up to $275,000,000, of which $205,000,000 was drawn at closing to pay down the Company’s Revolving Credit Agreement in its entirety. The remainder of the commitments were available for three months following the closing date, or the Availability Period, and were available in no more than three subsequent draws with a minimum of $20,000,000 per draw, or the remaining commitments available. After the Availability Period, the undrawn portion was no longer available. If the committed amount was not fully drawn within 60 days of closing, the Company was required to pay a fee to the lenders, calculated as 0.25% per annum on the average daily amount of the undrawn portion, payable quarterly in arrears, until the earlier of (i) the date when the commitments have been funded in full, or (ii) August 17, 2022. The 2028 Term Loan Agreement may be increased, subject to lender approval, to an aggregate amount not to exceed $500,000,000 and has a maturity date of January 31, 2028. The 2028 Term Loan Agreement is pari passu with the Company’s Revolving Credit Agreement and 2024 Term Loan Agreement. The Company refers to the 2028 Term Loan Agreement, the Revolving Credit Agreement and the 2024 Term Loan Agreement, collectively, as the “Unsecured Credit Facility,” which has aggregate commitments available of $1,075,000,000.

•On July 12, 2022 and July 20, 2022, the Company drew $50,000,000 and $20,000,000, respectively, on the 2028 Term Loan Agreement, to fund acquisitions. As of July 20, 2022, the 2028 Term Loan Agreement commitments were fully funded.

•During the year ended December 31, 2022, the Company drew $70,000,000 on the Revolving Credit Agreement to fund acquisitions and repaid $57,000,000 on the Revolving Credit Agreement, with proceeds from dispositions and cash flows from operations.

The principal payments due on the Unsecured Credit Facility as of December 31, 2022, for each of the next five years ending December 31 and thereafter, are as follows (amounts in thousands):

Year	Amount
2023	$	—
2024	300,000
2025	—
2026	8,000
2027	—
Thereafter	275,000
	$	583,000

The proceeds of the loans made under the Unsecured Credit Facility may be used to finance the purchase of properties, for tenant improvements and leasing commissions with respect to real estate, for repayment of indebtedness, for capital expenditures with respect to real estate, and for general corporate and working capital purposes. The Company may prepay the loans at any time, subject to certain notice requirements.

At the Company’s election, loans under the Unsecured Credit Facility may be made as Base Rate Loans or Secured Overnight Financing Rate, or SOFR, Loans. The applicable margin for loans that are Base Rate Loans is adjustable based on a total leverage ratio, ranging from 0.25% to 0.90%. The applicable margin for loans that are SOFR Loans is adjustable based on a total leverage ratio, ranging from 1.25% to 1.90%.

In addition to interest, the Company is required to pay a fee on the unused portion of the lenders’ commitments under the Revolving Credit Agreement at a rate per annum equal to 0.20% if the average daily amount outstanding under the Revolving Credit Agreement is less than 50% of the aggregate commitments, or 0.15% if the average daily amount outstanding under the Revolving Credit Agreement is equal to or greater than 50% of the aggregate commitments. The unused fee is payable quarterly in arrears.

The Unsecured Credit Facility contains customary financial and operating covenants, including covenants relating to a maximum consolidated leverage ratio, maximum secured leverage ratio, fixed charge coverage ratio, minimum consolidated

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tangible net worth, maximum distribution/payout ratio, covenants restricting the issuance of debt, imposition of liens, and entering into affiliate transactions.

Note 11—Fair Value

Cash and cash equivalents, restricted cash, tenant receivables, prepaid and other assets, accounts payable and accrued liabilities—The Company considers the carrying values of these financial instruments, assets and liabilities, to approximate fair value because of the short period of time between origination of the instruments and their expected realization.

Credit facility—The outstanding principal of the credit facility was $583,000,000 and $500,000,000, which approximated its fair value due to the variable nature of the terms as of December 31, 2022 and 2021, respectively.

The fair value of the Company's credit facility is estimated based on the interest rates currently offered to the Company by its financial institutions.

Derivative instruments—The Company’s derivative instruments consist of interest rate swaps. These swaps are carried at fair value to comply with the provisions of ASC 820. The fair value of these instruments is determined using interest rate market pricing models. The Company incorporated credit valuation adjustments to appropriately reflect the Company’s nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. The Company determined that the majority of the inputs used to value its interest rate swaps fall within Level 2 of the fair value hierarchy. The credit valuation adjustments associated with these instruments utilize Level 3 inputs, such as estimates of current credit spreads, to evaluate the likelihood of default by the Company and the respective counterparty. However, as of December 31, 2022, the Company assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and determined that the credit valuation adjustments are not significant to the overall valuation of its interest rate swaps. As a result, the Company determined that its interest rate swaps valuation in its entirety is classified in Level 2 of the fair value hierarchy.

Considerable judgment is necessary to develop estimated fair values of financial assets and liabilities. Accordingly, the estimates presented herein are not necessarily indicative of the amounts the Company could realize or be liable for on disposition of the financial assets and liabilities.

The following tables show the fair value of the Company’s financial assets and liabilities that are required to be measured at fair value on a recurring basis as of December 31, 2022 and 2021 (amounts in thousands):

	December 31, 2022
	Fair Value Hierarchy
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Fair Value
Assets:
Derivative assets	$	—	$	27,990	$	—	$	27,990
Total assets at fair value	$	—	$	27,990	$	—	$	27,990

	December 31, 2021
	Fair Value Hierarchy
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Fair Value
Assets:
Derivative assets	$	—	$	2,171	$	—	$	2,171
Total assets at fair value	$	—	$	2,171	$	—	$	2,171
Liabilities:
Derivative liabilities	$	—	$	5,618	$	—	$	5,618
Total liabilities at fair value	$	—	$	5,618	$	—	$	5,618

Derivative assets and liabilities are reported in the consolidated balance sheets as other assets, and accounts payable and other liabilities, respectively.

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Real Estate Assets—Due to the impairment of real estate assets which occurred during the year ended December 31, 2022, the Company has estimated the fair values of these assets using significant unobservable inputs through particular valuation techniques (Level 3). The fair values of real estate assets were determined by using comparable sales information. The comparable sales technique uses estimates of properties similar to the subject property and adjusts those using actual sales of comparable properties for differences in characteristics. The nature and amount of the adjustments made for the difference in characteristics were considered significant and thus are classified within Level 3 of the fair value hierarchy.

The following table shows the fair value of the Company's real estate assets, including acquired intangible assets measured at fair value on a non-recurring basis as of December 31, 2022 (amounts in thousands):

	December 31, 2022
	Fair Value Hierarchy
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Fair Value		Total Losses (1)
Real estate assets	$	—	$	—	$	13,898	$	13,898	$	51,769

(1)Amount includes impairment of in-place lease intangible assets in the amount of approximately $4,345,000.

The following table sets forth quantitative information about the significant unobservable inputs of the Company’s Level 3 real estate recorded as of December 31, 2022:

Significant Unobservable Inputs	December 31, 2022
Comparable sale price per square foot	$5.01	–	$6.56

Note 12—Derivative Instruments and Hedging Activities

Cash Flow Hedges of Interest Rate Risk

The Company’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish these objectives, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy. During the years ended December 30, 2022 and 2021, such derivatives were used to hedge the variable cash flows associated with existing variable-rate debt.

For derivatives designated and that qualify as cash flow hedges of interest rate risk, the gain or loss on the derivative is recorded in accumulated other comprehensive income (loss) and subsequently reclassified into interest expense the same period(s) during which the hedged transaction affects earnings. Amounts reported in accumulated other comprehensive income (loss) related to current and terminated derivatives will be reclassified to interest and other expense, net, as interest is incurred on the Company’s variable rate debt. During the next twelve months, the Company estimates that an additional $18,078,000 will be reclassified from accumulated other comprehensive income (loss) as an increase to earnings. During the year ended December 31, 2021, the Company accelerated the reclassification of amounts in other comprehensive income to earnings as a result of the hedged forecasted transactions becoming probable not to occur. The accelerated amounts were a gain of $67,000.

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The following table summarizes the notional amount and fair value of the Company’s derivative instruments (amounts in thousands):

Derivatives Designated as Hedging Instruments	Balance Sheet Location	Effective Dates (2), (3)	Maturity Dates (2)	December 31, 2022						December 31, 2021
				Outstanding Notional Amount (2)		Fair Value of				Outstanding Notional Amount		Fair Value of
						Assets		(Liabilities)				Assets		(Liabilities)
Interest rate swaps	(1)	05/01/2022 to 05/01/2023	04/27/2023 to 01/31/2028	$	485,000	$	27,990	$	—	$	400,000	$	2,171	$	(5,618)

(1)     Derivative assets and liabilities are reported in the consolidated balance sheets as other assets and accounts payable and other liabilities, respectively.

(2)    In May 2022, the Company entered into bilateral agreements with its swap counterparties to transition all of its interest rate swap agreements to SOFR. The Company made various ASC 848 elections related to changes in critical terms of the hedging relationships due to reference rate reform to not result in a de-designation of these hedging relationships. As of June 30, 2022, all of the Company's interest rate swap agreements were indexed to SOFR.

The notional amount under the agreements is an indication of the extent of the Company’s involvement in each instrument at the time, but does not represent exposure to credit, interest rate or market risks.

The table below summarizes the amount of income and losses recognized on the interest rate derivatives designated as cash flow hedges for the years ended December 31, 2022, 2021 and 2020 (amounts in thousands):

Derivatives in Cash Flow Hedging Relationships	Amount of Income (Loss) Recognized in Other Comprehensive Income on Derivatives		Location of Loss Reclassified From Accumulated Other Comprehensive Income (Loss) to Net (Loss) Income	Amount of Loss Reclassified From Accumulated Other Comprehensive Income (Loss) to Net (Loss) Income		Total Amount of Line Item in Consolidated Statements of Comprehensive Income
Year Ended December 31, 2022
Interest rate swaps - continuing operations	$	32,317	Interest and other expense, net	$	(520)	$	23,772
Year Ended December 31, 2021
Interest rate swaps - continuing operations	$	5,956	Interest and other expense, net	$	(8,031)	$	34,515
Interest rate swaps - discontinued operations	(37)		Income from discontinued operations	(1,647)		401,444
Total	$	5,919		$	(9,678)
Year Ended December 31, 2020
Interest rate swaps - continuing operations	$	(19,676)	Interest and other expense, net	$	(6,263)	$	42,025
Interest rate swaps - discontinued operations	(3,907)		Income from discontinued operations	(1,580)		27,839
Total	$	(23,583)		$	(7,843)

Credit Risk-Related Contingent Features

The Company has agreements with each of its derivative counterparties that contain a provision where if the Company either defaults or is capable of being declared in default on any of its indebtedness, then the Company could also be declared in default on its derivative obligations. The Company records credit risk valuation adjustments on its interest rate swaps based on the respective credit quality of the Company and the counterparty. The Company believes it mitigates its credit risk by entering into agreements with creditworthy counterparties. As of December 31, 2022, the Company had no derivatives with fair value in a net liability position, inclusive of accrued interest but excluding any adjustment for nonperformance risk related to the agreement. As of December 31, 2022, there were no termination events or events of default related to the interest rate swaps.

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Tabular Disclosure Offsetting Derivatives

The Company has elected not to offset derivative positions in its consolidated financial statements. The following tables present the effect on the Company’s financial position had the Company made the election to offset its derivative positions as of December 31, 2022 and December 31, 2021 (amounts in thousands):

Offsetting of Derivative Assets
							Gross Amounts Not Offset in the Balance Sheet
	Gross Amounts of Recognized Assets		Gross Amounts Offset in the Balance Sheet		Net Amounts of Assets Presented in the Balance Sheet		Financial Instruments Collateral		Cash Collateral		Net Amount
December 31, 2022	$	27,990	$	—	$	27,990	$	—	$	—	$	27,990
December 31, 2021	$	2,171	$	—	$	2,171	$	(1,023)	$	—	$	1,148

Offsetting of Derivative Liabilities
							Gross Amounts Not Offset in the Balance Sheet
	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Balance Sheet		Net Amounts of Liabilities Presented in the Balance Sheet		Financial Instruments Collateral		Cash Collateral		Net Amount
December 31, 2022	$	—	$	—	$	—	$	—	$	—	$	—
December 31, 2021	$	5,618	$	—	$	5,618	$	(1,023)	$	—	$	4,595

Note 13—Stockholders' Equity

Distributions Paid and Distributions Payable

The Company declared distributions per share of common stock in the amounts of $0.40, $2.19 and $0.48 for the years ended December 31, 2022, 2021 and 2020, respectively. The distributions declared for the year ended December 31, 2021, includes a special cash distribution of $1.75 per share of Class A, Class I, Class T and Class T2 shares of common stock. The special cash distribution was funded with the proceeds from the Data Center Sale. The special cash distribution was paid on July 30, 2021 to stockholders of record at the close of business on July 26, 2021. As of December 31, 2022, the Company had distributions payable of approximately $7,719,000. Of these distributions payable, approximately $5,592,000 was paid in cash and approximately $2,127,000 was reinvested in shares of common stock pursuant to the DRIP on January 6, 2023.

Share Repurchase Program

During the year ended December 31, 2022, the Company repurchased 1,123,183 Class A shares, Class I shares and Class T shares of common stock (981,772 Class A shares, 31,666 Class I shares and 109,745 Class T shares), or 0.50% of shares outstanding as of December 31, 2021, for an aggregate purchase price of approximately $9,217,000 (an average of $8.21 per share). During the year ended December 31, 2021, the Company repurchased 1,133,901 Class A shares, Class I shares and Class T shares of common stock (1,055,054 Class A shares, 11,836 Class I shares and 67,011 Class T shares), or 0.51% of shares outstanding as of December 31, 2020, for an aggregate purchase price of approximately $9,528,000 (an average of $8.40 per share).

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Accumulated Other Comprehensive Income (Loss)

The following table presents a rollforward of amounts recognized in accumulated other comprehensive income (loss) by component for the year ended December 31, 2022, 2021 and 2020 (amounts in thousands):

	Unrealized (Loss) Income on Derivative Instruments
Balance as of December 31, 2019	$	(4,704)
Other comprehensive loss before reclassification	(23,583)
Amount of loss reclassified from accumulated other comprehensive loss to net income	7,843
Other comprehensive loss	(15,740)
Balance as of December 31, 2020	(20,444)
Other comprehensive income before reclassification	5,919
Amount of loss reclassified from accumulated other comprehensive loss to net income	9,678
Other comprehensive income	15,597
Balance as of December 31, 2021	(4,847)
Other comprehensive income before reclassification	32,317
Amount of loss reclassified from accumulated other comprehensive (loss) income to net (loss) income	520
Other comprehensive income	32,837
Balance as of December 31, 2022	$	27,990

The following table presents reclassifications out of accumulated other comprehensive income (loss) for the year ended December 31, 2022, 2021 and 2020 (amounts in thousands):

Details about Accumulated Other Comprehensive Income (Loss) Components	Loss Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) to Net (Loss) Income						Affected Line Items in the Consolidated Statements of Comprehensive Income
	Year Ended December 31,
	2022		2021		2020
Interest rate swap contracts - continuing operations	$	520	$	8,031	$	6,263	Interest and other expense, net
Interest rate swap contracts - discontinued operations	—		1,647		$	1,580	Income from discontinued operations
Interest rate swap contracts	$	520	$	9,678	$	7,843

Note 14—Earnings Per Share

For the years ended December 31, 2022 and 2021, diluted earnings per share was computed the same as basic earnings per share, because the Company recorded a loss from continuing operations, which would make potentially dilutive shares of 1,341,000 and 968,000, respectively, related to non-vested shares of restricted common stock and performance-based equity awards, or Performance DSUs, anti-dilutive. For the year ended December 31, 2020, diluted earnings per share reflected the effect of approximately 186,000 of non-vested shares of restricted common stock that were outstanding.

Note 15—Stock-based Compensation

The Board has authorized a total of 5,000,000 Class A shares of common stock for issuance under the A&R Incentive Plan on a fully diluted basis at any time. Subject to certain limited exceptions, restricted stock may not be sold, assigned, transferred, pledged, encumbered, hypothecated or otherwise disposed of and is subject to forfeiture within the vesting period.

The Company recognized accelerated stock-based compensation expense of $326,000 during the year ended December 31, 2022. The Company recognized total stock-based compensation expense of approximately $4,180,000, $2,379,000 and $437,000, respectively, for the years ended December 31, 2022, 2021 and 2020, which is reported in general and administrative expenses in the accompanying consolidated statements of comprehensive income.

As of December 31, 2022 and 2021, there was $6,834,000 and $5,886,000, respectively, of total unrecognized compensation expense related to nonvested shares of the Company’s restricted Class A common stock and Performance DSUs. This expense is expected to be recognized over a remaining weighted average period of 2.02 years. This expected expense does not include the impact of any future stock-based compensation awards.

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The fair value of each restricted stock and Performance DSU award is estimated based on the most recent Estimated Per Share NAV. As of December 31, 2022 and 2021, the fair value of the nonvested shares of restricted Class A common stock and Performance DSUs was $11,703,000 and $7,991,000, respectively. A summary of the status of the nonvested shares of restricted Class A common stock and Performance DSUs as of December 31, 2021 and the changes for the year ended December 31, 2022 is presented below:

Restricted Stock and and Performance DSUs	Shares
Nonvested restricted Class A common stock and Performance DSUs at December 31, 2021	974,558
Vested Class A common stock	(167,500)
Vested Performance DSUs	(5,387)
Forfeited restricted Class A common stock	(16,344)
Forfeited Performance DSUs	(15,438)
Granted restricted Class A common stock	335,854
Granted Performance DSUs	317,947
Nonvested restricted Class A common stock and Performance DSUs at December 31, 2022	1,423,690

Note 16—Income Taxes

As a REIT, the Company generally will not be subject to U.S. federal income tax on taxable income that it distributes to the stockholders. For U.S. federal income tax purposes, distributions to stockholders are characterized as either ordinary dividends, capital gain distributions, or nontaxable distributions. Nontaxable distributions will reduce U.S. stockholders’ respective bases in their shares. The following table shows the character of distributions the Company paid on a percentage basis during the years ended December 31, 2022, 2021 and 2020:

	Year Ended December 31,
Character of Distributions (1):	2022		2021		2020
Ordinary dividends	40.94	%	27.91	%	—	%
Capital gain distributions	—	%	—	%	—	%
Nontaxable distributions	59.06	%	72.09	%	100.00	%
Total	100.00	%	100.00	%	100.00	%
	Year Ended December 31,
Character of Special Distribution (1):	2022		2021		2020
Ordinary dividends	—	%	12.39	%	—	%
Capital gain distributions	—	%	86.66	%	—	%
Nontaxable distributions	—	%	0.95	%	—	%
Total	—	%	100.00	%	—	%

(1)Attributable to Class A shares, Class I shares, Class T shares and Class T2 shares of common stock.

The Company applies the rules under ASC 740-10, Accounting for Uncertainty in Income Taxes, for uncertain tax positions using a “more likely than not” recognition threshold for tax positions. Pursuant to these rules, the financial statement effects of a tax position are initially recognized when it is more likely than not, based on the technical merits of the tax position, that such a position will be sustained upon examination by the relevant tax authorities. If the tax benefit meets the “more likely than not” threshold, the measurement of the tax benefit will be based on the Company's estimate of the ultimate tax benefit to be sustained if audited by the taxing authority. The Company concluded there was no impact related to uncertain tax positions from the results of the operations of the Company for the years ended December 31, 2022, 2021 and 2020. The earliest tax year currently subject to examination is 2019.

The Company’s policy is to recognize accrued interest related to unrecognized tax benefits as a component of interest expense and penalties related to unrecognized tax benefits as a component of general and administrative expenses. From inception through December 31, 2022, the Company has not recognized any interest expense or penalties related to unrecognized tax benefits.

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Note 17—Commitments and Contingencies

Legal Proceedings

In the ordinary course of business, the Company may become subject to litigation or claims. As of December 31, 2022, there were, and currently there are, no material pending legal proceedings to which the Company is a party. While the resolution of a lawsuit or proceeding may have an impact to the Company's financial results for the period in which it is resolved, the Company believes that the final resolution of the lawsuits or proceedings in which it is currently involved, either individually or in the aggregate, will not have a material adverse effect on its financial position, results of operations or liquidity.

Note 18—Selected Quarterly Financial Data (Unaudited)

Presented in the following table is a summary of the unaudited quarterly financial information for the years ended December 31, 2022 and 2021. The Company believes that all necessary adjustments, consisting only of normal recurring adjustments, have been included in the amounts stated below to present fairly, and in accordance with GAAP, the selected quarterly information (amounts in thousands, except shares and per share data):

	2022
	Fourth Quarter		Third Quarter		Second Quarter		First Quarter
Total revenue	$	43,905	$	46,881	$	44,918	$	44,282
Total expenses	(72,837)		(27,991)		(28,568)		(35,256)
Gain on real estate disposition	—		—		—		460
Interest and other expense, net	(5,830)		(5,498)		(4,329)		(8,115)
(Loss) income from operations	(34,762)		13,392		12,021		1,371
Net (loss) income attributable to common stockholders	$	(34,762)	$	13,392	$	12,021	$	1,371
Net (loss) income per common share attributable to common stockholders:
Basic:
Net (loss) income attributable to common stockholders	$	(0.15)	$	0.06	$	0.05	$	0.01
Diluted:
Net (loss) income attributable to common stockholders	$	(0.15)	$	0.06	$	0.05	$	0.01
Weighted average number of common shares outstanding:
Basic	226,112,737		225,638,485		225,008,452		224,499,307
Diluted	226,112,737		226,957,015		226,362,977		225,865,366
	2021
	Fourth Quarter		Third Quarter		Second Quarter		First Quarter
Total revenue	$	43,606	$	43,063	$	43,747	$	42,422
Total expenses	(27,138)		(36,872)		(34,462)		(38,724)
Gain on real estate disposition	89		—		—		—
Interest and other expense, net	(4,480)		(11,737)		(9,534)		(8,764)
Income (loss) from continuing operations	12,077		(5,546)		(249)		(5,066)
Income from discontinued operations	—		377,191		16,305		7,948
Net income attributable to common stockholders	$	12,077	$	371,645	$	16,056	$	2,882
Net income (loss) per common share attributable to common stockholders:
Basic:
Continuing operations	$	0.05	$	(0.03)	$	—	$	(0.02)
Discontinued operations	—		1.69		0.07		0.03
Net income attributable to common stockholders	$	0.05	$	1.66	$	0.07	$	0.01
Diluted:
Continuing operations	$	0.05	$	(0.03)	$	—	$	(0.02)
Discontinued operations	—		1.69		0.07		0.03
Net income attributable to common stockholders	$	0.05	$	1.66	$	0.07	$	0.01
Weighted average number of common shares outstanding:
Basic	224,054,323		223,661,774		223,082,912		222,481,179
Diluted	225,031,906		223,661,774		223,082,912		222,481,179

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Note 19—Subsequent Events

Distributions Paid to Stockholders

The following table summarizes the Company's distributions paid to stockholders on January 6, 2023, for the period from December 1, 2022 through December 31, 2022 (amounts in thousands):

Payment Date	Common Stock	Cash		DRIP		Total Distribution
January 6, 2023	Class A	$	4,506	$	1,249	$	5,755
January 6, 2023	Class I	338		231		569
January 6, 2023	Class T	748		647		1,395
		$	5,592	$	2,127	$	7,719

The following table summarizes the Company's distributions paid to stockholders on February 6, 2023, for the period from January 1, 2023 through January 31, 2023 (amounts in thousands):

Payment Date	Common Stock	Cash		DRIP		Total Distribution
February 6, 2023	Class A	$	4,522	$	1,245	$	5,767
February 6, 2023	Class I	339		231		570
February 6, 2023	Class T	748		649		1,397
		$	5,609	$	2,125	$	7,734

The following table summarizes the Company's distributions paid to stockholders on March 6, 2023, for the period from February 1, 2023 through February 28, 2023 (amounts in thousands):

Payment Date	Common Stock	Cash		DRIP		Total Distribution
March 6, 2023	Class A	$	4,081	$	1,123	$	5,204
March 6, 2023	Class I	307		209		516
March 6, 2023	Class T	675		587		1,262
		$	5,063	$	1,919	$	6,982

Distributions Authorized

The following tables summarize the daily distributions approved and authorized by the Board subsequent to December 31, 2022:

Authorization Date (1)	Common Stock	Daily Distribution Rate (1)		Annualized Distribution Per Share
January 18, 2023	Class A	$	0.00109589	$	0.40
January 18, 2023	Class I	$	0.00109589	$	0.40
January 18, 2023	Class T	$	0.00109589	$	0.40

Authorization Date (2)	Common Stock	Daily Distribution Rate (2)		Annualized Distribution Per Share
February 17, 2023	Class A	$	0.00109589	$	0.40
February 17, 2023	Class I	$	0.00109589	$	0.40
February 17, 2023	Class T	$	0.00109589	$	0.40

Authorization Date (3)	Common Stock	Daily Distribution Rate (2)		Annualized Distribution Per Share
March 15, 2023	Class A	$	0.00109589	$	0.40
March 15, 2023	Class I	$	0.00109589	$	0.40
March 15, 2023	Class T	$	0.00109589	$	0.40

(1)Distributions approved and authorized to stockholders of record as of the close of business on each day of the period commencing on February 1, 2023 and ending on February 28, 2023. The distributions are calculated based on 365 days in the calendar year. The distributions declared for each record date in February 2023 were paid in March 2023. The distributions are payable to stockholders from legally available funds therefor.

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(2)Distributions approved and authorized to stockholders of record as of the close of business on each day of the period commencing on March 1, 2023 and ending on March 31, 2023. The distributions will be calculated based on 365 days in the calendar year. The distributions declared for each record date in March 2023 will be paid in April 2023. The distributions will be payable to stockholders from legally available funds therefor.

(3)Distributions approved and authorized to stockholders of record as of the close of business on each day of the period commencing on April 1, 2023 and ending on April 30, 2023. The distributions will be calculated based on 365 days in the calendar year. The distributions declared for each record date in April 2023 will be paid in May 2023. The distributions will be payable to stockholders from legally available funds therefor.

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SCHEDULE III — REAL ESTATE ASSETS AND ACCUMULATED DEPRECIATION

December 31, 2022

(in thousands)

					Initial Cost				Cost Capitalized Subsequent to Acquisition (b)		Gross Amount Carried at December 31, 2022
Property Description	Location	Encumbrances			Land		Buildings and Improvements				Land		Buildings and Improvements (c)		Total		Accumulated Depreciation (d)		Year Constructed	Year Renovated	Date Acquired
Houston Healthcare Facility	Houston, TX	$	—	(a)	$	762	$	2,970	$	106	$	762	$	3,076	$	3,838	$	857	1993	—	07/31/2014
Cincinnati Healthcare Facility	Cincinnati, OH	—		(a)	356		3,167		89		356		3,256		3,612		804		2001	—	10/29/2014
Winston-Salem Healthcare Facility	Winston-Salem, NC	—		(a)	684		4,903		—		684		4,903		5,587		1,175		2004	—	12/17/2014
Stoughton Healthcare Facility	Stoughton, MA	—		(a)	4,049		19,991		3,247		4,049		23,238		27,287		4,970		1973	1997	12/23/2014
Fort Worth Healthcare Facility	Fort Worth, TX	—		(a)	8,297		35,615		—		8,297		35,615		43,912		7,508		2014	—	12/31/2014
Fort Worth Healthcare Facility II	Fort Worth, TX	—		(a)	367		1,587		201		367		1,788		2,155		621		2014	—	12/31/2014
Winter Haven Healthcare Facility	Winter Haven, FL	—		(a)	—		2,805		—		—		2,805		2,805		620		2009	—	01/27/2015
Overland Park Healthcare Facility	Overland Park, KS	—		(a)	1,558		20,549		—		1,558		20,549		22,107		4,254		2014	—	02/17/2015
Clarion Healthcare Facility	Clarion, PA	—		(a)	462		5,377		—		462		5,377		5,839		1,371		2012	—	06/01/2015
Webster Healthcare Facility	Webster, TX	—		(a)	1,858		20,140		—		1,858		20,140		21,998		3,983		2015	—	06/05/2015
Augusta Healthcare Facility	Augusta, ME	—		(a)	556		14,401		103		556		14,504		15,060		3,042		2010	—	07/22/2015
Cincinnati Healthcare Facility II	Cincinnati, OH	—		(a)	1,812		24,382		(14,422)		943		10,829		11,772		—		1960	2014	07/22/2015
Cincinnati Healthcare Facility III	Cincinnati, OH	—		(a)	446		10,239		4		446		10,243		10,689		2,031		2014	—	07/22/2015
Florence Healthcare Facility	Florence, KY	—		(a)	650		9,919		—		650		9,919		10,569		1,960		2014	—	07/22/2015
Oakland Healthcare Facility	Oakland, ME	—		(a)	229		5,416		—		229		5,416		5,645		1,235		2004	—	07/22/2015
Wyomissing Healthcare Facility	Wyomissing, PA	—		(a)	1,504		20,193		—		1,504		20,193		21,697		4,070		2007	—	07/24/2015
Luling Healthcare Facility	Luling, TX	—		(a)	824		7,530		—		824		7,530		8,354		1,509		2003	—	07/30/2015
Omaha Healthcare Facility	Omaha, NE	—		(a)	1,259		9,796		—		1,259		9,796		11,055		1,856		2014	—	10/14/2015
Sherman Healthcare Facility	Sherman, TX	—		(a)	1,679		23,926		—		1,679		23,926		25,605		4,429		2005	2010	11/20/2015
Sherman Healthcare Facility II	Sherman, TX	—		(a)	214		3,209		—		214		3,209		3,423		599		2005	—	11/20/2015
Fort Worth Healthcare Facility III	Fort Worth, TX	—		(a)	3,120		9,312		—		3,120		9,312		12,432		1,725		1998	2007/2015	12/23/2015
Oklahoma City Healthcare Facility	Oklahoma City, OK	—		(a)	4,626		30,509		—		4,626		30,509		35,135		5,834		1985	1998/2003	12/29/2015
Oklahoma City Healthcare Facility II	Oklahoma City, OK	—		(a)	991		8,366		—		991		8,366		9,357		1,701		1994	1999	12/29/2015
Edmond Healthcare Facility	Edmond, OK	—		(a)	796		3,199		—		796		3,199		3,995		655		2002	—	01/20/2016
Oklahoma City Healthcare Facility III	Oklahoma City, OK	—		(a)	452		1,081		—		452		1,081		1,533		227		2006	—	01/27/2016
Oklahoma City Healthcare Facility IV	Oklahoma City, OK	—		(a)	368		2,344		—		368		2,344		2,712		480		2007	—	01/27/2016
Newcastle Healthcare Facility	Newcastle, OK	—		(a)	412		1,173		—		412		1,173		1,585		245		1995	1999	02/03/2016
Oklahoma City Healthcare Facility V	Oklahoma City, OK	—		(a)	541		12,445		—		541		12,445		12,986		2,524		2008	—	02/11/2016
Rancho Mirage Healthcare Facility	Rancho Mirage, CA	—		(a)	2,724		7,626		29,844		2,726		37,468		40,194		4,098		2018	—	03/01/2016
Oklahoma City Healthcare Facility VI	Oklahoma City, OK	—		(a)	896		3,684		—		896		3,684		4,580		760		2007	—	03/07/2016
Oklahoma City Healthcare Facility VII	Oklahoma City, OK	—		(a)	3,203		32,380		—		3,203		32,380		35,583		5,558		2016	—	06/22/2016
Las Vegas Healthcare Facility	Las Vegas, NV	—		(a)	2,614		639		22,091		2,895		22,449		25,344		2,985		2017	—	06/24/2016
Oklahoma City Healthcare Facility VIII	Oklahoma City, OK	—		(a)	2,002		15,384		—		2,002		15,384		17,386		2,605		1997	2008	06/30/2016
Marlton Healthcare Facility	Marlton, NJ	—		(a)	—		57,154		5		—		57,159		57,159		8,755		1995	—	11/01/2016
Grand Rapids Healthcare Facility	Grand Rapids, MI	—		(a)	2,533		39,487		1,034		2,533		40,521		43,054		7,150		2008	—	12/07/2016
Corpus Christi Healthcare Facility	Corpus Christi, TX	—		(a)	975		4,963		716		1,002		5,652		6,654		967		1992	2,016	12/22/2016
Aurora Healthcare Facility	Aurora, IL	—		(a)	973		9,632		19		973		9,651		10,624		1,507		2002	—	03/30/2017

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				Initial Cost		Cost Capitalized Subsequent to Acquisition (b)	Gross Amount Carried at December 31, 2022
Property Description	Location	Encumbrances		Land	Buildings and Improvements		Land	Buildings and Improvements (c)	Total	Accumulated Depreciation (d)	Year Constructed	Year Renovated	Date Acquired
Allen Healthcare Facility	Allen, TX	—	(a)	857	20,582	—	857	20,582	21,439	3,209	2007	—	03/31/2017
Austin Healthcare Facility	Austin, TX	—	(a)	1,368	32,039	—	1,368	32,039	33,407	4,996	2012	—	03/31/2017
Beaumont Healthcare Facility	Beaumont, TX	—	(a)	946	8,372	—	946	8,372	9,318	1,313	1991	—	03/31/2017
San Antonio Healthcare Facility	San Antonio, TX	—	(a)	1,813	11,706	—	1,813	11,706	13,519	1,759	1984	—	06/29/2017
Silverdale Healthcare Facility	Silverdale, WA	—	(a)	1,530	7,506	15	1,530	7,521	9,051	1,237	2005	—	08/25/2017
Silverdale Healthcare Facility II	Silverdale, WA	—	(a)	1,542	4,981	—	1,542	4,981	6,523	885	2007	—	09/20/2017
Saginaw Healthcare Facility	Saginaw, MI	—	(a)	1,251	15,878	235	1,251	16,113	17,364	2,928	2002	—	12/21/2017
Carrollton Healthcare Facility	Carrollton, TX	—	(a)	1,995	5,870	39	1,995	5,909	7,904	771	2015	—	04/27/2018
Katy Healthcare Facility	Katy, TX	—	(a)	1,443	12,114	—	1,443	12,114	13,557	1,428	2015	—	06/08/2018
Indianola Healthcare Facility	Indianola, IA	—	(a)	330	5,698	67	330	5,765	6,095	669	2014	—	09/26/2018
Indianola Healthcare Facility II	Indianola, IA	—	(a)	709	6,061	—	709	6,061	6,770	733	2011	—	09/26/2018
Benton Healthcare Facility	Benton, AR	—	(a)	—	19,048	—	—	19,048	19,048	2,177	1992/1999	2012	10/17/2018
Benton Healthcare Facility II	Benton, AR	—	(a)	—	1,647	—	—	1,647	1,647	209	1983	—	10/17/2018
Bryant Healthcare Facility	Bryant, AR	—	(a)	930	3,539	—	930	3,539	4,469	446	1995	—	10/17/2018
Hot Springs Healthcare Facility	Hot Springs, AR	—	(a)	384	2,077	—	384	2,077	2,461	270	2009	—	10/17/2018
Clive Healthcare Facility	Clive, IA	—	(a)	336	22,332	158	336	22,490	22,826	2,920	2008	—	11/26/2018
Valdosta Healthcare Facility	Valdosta, GA	—	(a)	659	5,626	—	659	5,626	6,285	730	2004	—	11/28/2018
Valdosta Healthcare Facility II	Valdosta, GA	—	(a)	471	2,780	—	471	2,780	3,251	366	1992	—	11/28/2018
Bryant Healthcare Facility II	Bryant, AR	—	(a)	647	3,364	—	647	3,364	4,011	323	2016	—	08/16/2019
Laredo Healthcare Facility	Laredo, TX	—	(a)	—	12,137	—	—	12,137	12,137	1,083	1998	—	09/19/2019
Laredo Healthcare Facility II	Laredo, TX	—	(a)	—	23,677	83	—	23,760	23,760	2,157	1998	—	09/19/2019
Poplar Bluff Healthcare Facility	Poplar Bluff, MO	—	(a)	—	13,515	—	—	13,515	13,515	1,211	2013	—	09/19/2019
Tucson Healthcare Facility	Tucson, AZ	—	(a)	—	5,998	—	—	5,998	5,998	540	1998	—	09/19/2019
Akron Healthcare Facility	Green, OH	—	(a)	3,503	38,512	—	3,503	38,512	42,015	3,293	2012	—	10/04/2019
Akron Healthcare Facility II	Green, OH	—	(a)	1,085	10,277	—	1,085	10,277	11,362	1,056	2013	—	10/04/2019
Akron Healthcare Facility III	Akron, OH	—	(a)	2,206	26,044	—	2,206	26,044	28,250	2,152	2008	—	10/04/2019
Alexandria Healthcare Facility	Alexandria, LA	—	(a)	—	5,076	—	—	5,076	5,076	419	2007	—	10/04/2019
Appleton Healthcare Facility	Appleton, WI	—	(a)	414	1,900	—	414	1,900	2,314	209	2011	—	10/04/2019
Austin Healthcare Facility II	Austin, TX	—	(a)	3,229	7,534	(2,807)	2,195	5,761	7,956	489	2006	—	10/04/2019
Bellevue Healthcare Facility	Green Bay, WI	—	(a)	567	1,269	—	567	1,269	1,836	145	2010	—	10/04/2019
Bonita Springs Healthcare Facility	Bonita Springs, FL	—	(a)	1,199	4,373	—	1,199	4,373	5,572	371	2002	2005	10/04/2019
Bridgeton Healthcare Facility	Bridgeton, MO	—	(a)	—	39,740	—	—	39,740	39,740	3,270	2012	—	10/04/2019
Covington Healthcare Facility	Covington, LA	—	(a)	2,238	16,635	—	2,238	16,635	18,873	1,362	1984	—	10/04/2019
Crestview Healthcare Facility	Crestview, FL	—	(a)	400	1,536	—	400	1,536	1,936	146	2004	2010	10/04/2019
Dallas Healthcare Facility	Dallas, TX	—	(a)	6,072	27,457	—	6,072	27,457	33,529	2,211	2011	—	10/04/2019
De Pere Healthcare Facility	De Pere, WI	—	(a)	615	1,596	—	615	1,596	2,211	176	2005	—	10/04/2019
Denver Healthcare Facility	Thornton, CO	—	(a)	3,586	32,363	—	3,586	32,363	35,949	2,688	1962	2018	10/04/2019
El Segundo Healthcare Facility	El Segundo, CA	—	(a)	2,659	9,016	—	2,659	9,016	11,675	748	2009	—	10/04/2019
Fairlea Healthcare Facility	Fairlea, WV	—	(a)	139	1,910	—	139	1,910	2,049	167	1999	—	10/04/2019
Fayetteville Healthcare Facility	Fayetteville, AR	—	(a)	485	24,855	—	485	24,855	25,340	2,035	1994	2009	10/04/2019
Fort Myers Healthcare Facility	Fort Myers, FL	—	(a)	2,153	2,387	—	2,153	2,387	4,540	246	1999	—	10/04/2019
Fort Myers Healthcare Facility II	Fort Myers, FL	—	(a)	3,557	11,064	—	3,557	11,064	14,621	1,063	2010	2022	10/04/2019

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Table of Contents

				Initial Cost		Cost Capitalized Subsequent to Acquisition (b)	Gross Amount Carried at December 31, 2022
Property Description	Location	Encumbrances		Land	Buildings and Improvements		Land	Buildings and Improvements (c)	Total	Accumulated Depreciation (d)	Year Constructed	Year Renovated	Date Acquired
Fort Walton Beach Healthcare Facility	Fort Walton Beach, FL	—	(a)	385	3,182	—	385	3,182	3,567	277	2005	—	10/04/2019
Frankfort Healthcare Facility	Frankfort, KY	—	(a)	342	950	—	342	950	1,292	93	1993	2019	10/04/2019
Frisco Healthcare Facility	Frisco, TX	—	(a)	—	22,114	4,653	—	26,767	26,767	2,926	2010	2020	10/04/2019
Goshen Healthcare Facility	Goshen, IN	—	(a)	383	5,355	—	383	5,355	5,738	484	2010	—	10/04/2019
Hammond Healthcare Facility	Hammond, LA	—	(a)	2,693	23,750	—	2,693	23,750	26,443	2,019	2006	—	10/04/2019
Hammond Healthcare Facility II	Hammond, LA	—	(a)	950	12,147	—	950	12,147	13,097	1,021	2004	—	10/04/2019
Harlingen Healthcare Facility	Harlingen, TX	—	(a)	—	10,628	(10,378)	—	250	250	—	2007	—	10/04/2019
Henderson Healthcare Facility	Henderson, NV	—	(a)	839	2,390	—	839	2,390	3,229	217	2000	—	10/04/2019
Houston Healthcare Facility III	Houston, TX	—	(a)	752	5,832	—	752	5,832	6,584	481	1998	2018	10/04/2019
Howard Healthcare Facility	Howard, WI	—	(a)	529	1,818	—	529	1,818	2,347	202	2011	—	10/04/2019
Jacksonville Healthcare Facility	Jacksonville, FL	—	(a)	1,233	6,173	—	1,233	6,173	7,406	540	2009	—	10/04/2019
Lafayette Healthcare Facility	Lafayette, LA	—	(a)	4,819	35,424	—	4,819	35,424	40,243	2,947	2004	2005	10/04/2019
Lakewood Ranch Healthcare Facility	Lakewood Ranch, FL	—	(a)	636	1,784	—	636	1,784	2,420	198	2008	—	10/04/2019
Las Vegas Healthcare Facility II	Las Vegas, NV	—	(a)	651	5,323	—	651	5,323	5,974	460	2007	—	10/04/2019
Lehigh Acres Healthcare Facility	Lehigh Acres, FL	—	(a)	441	2,956	—	441	2,956	3,397	268	2002	—	10/04/2019
Lubbock Healthcare Facility	Lubbock, TX	—	(a)	5,210	39,939	—	5,210	39,939	45,149	3,264	2003	—	10/04/2019
Manitowoc Healthcare Facility	Manitowoc, WI	—	(a)	257	1,733	—	257	1,733	1,990	185	2003	—	10/04/2019
Manitowoc Healthcare Facility II	Manitowoc, WI	—	(a)	250	11,231	—	250	11,231	11,481	1,012	1964	2010	10/04/2019
Marinette Healthcare Facility	Marinette, WI	—	(a)	208	1,002	—	208	1,002	1,210	110	2008	—	10/04/2019
New Bedford Healthcare Facility	New Bedford, MA	—	(a)	2,464	26,297	(27,522)	115	1,124	1,239	—	1942	1995	10/04/2019
New Braunfels Healthcare Facility	New Braunfels, TX	—	(a)	2,568	11,386	—	2,568	11,386	13,954	945	2007	—	10/04/2019
North Smithfield Healthcare Facility	North Smithfield, RI	—	(a)	1,309	14,024	—	1,309	14,024	15,333	1,229	1965	2000	10/04/2019
Oklahoma City Healthcare Facility IX	Oklahoma City, OK	—	(a)	1,316	9,822	—	1,316	9,822	11,138	930	2007	—	10/04/2019
Oshkosh Healthcare Facility	Oshkosh, WI	—	(a)	414	2,043	—	413	2,044	2,457	207	2010	—	10/04/2019
Palm Desert Healthcare Facility	Palm Desert, CA	—	(a)	582	5,927	—	582	5,927	6,509	548	2005	—	10/04/2019
Rancho Mirage Healthcare Facility II	Rancho Mirage, CA	—	(a)	2,286	5,481	—	2,286	5,481	7,767	497	2008	—	10/04/2019
San Antonio Healthcare Facility III	San Antonio, TX	—	(a)	1,824	22,809	—	1,824	22,809	24,633	1,854	2012	—	10/04/2019
San Antonio Healthcare Facility IV	San Antonio, TX	—	(a)	—	31,694	—	—	31,694	31,694	2,576	1987	—	10/04/2019
San Antonio Healthcare Facility V	San Antonio, TX	—	(a)	3,273	19,697	1,023	3,273	20,720	23,993	1,849	2017	—	10/04/2019
Santa Rosa Beach Healthcare Facility	Santa Rosa Beach, FL	—	(a)	741	3,049	—	741	3,049	3,790	249	2003	—	10/04/2019
Savannah Healthcare Facility	Savannah, GA	—	(a)	2,300	20,186	—	2,300	20,186	22,486	1,653	2014	—	10/04/2019
Sturgeon Bay Healthcare Facility	Sturgeon Bay, WI	—	(a)	248	700	—	248	700	948	84	2007	—	10/04/2019
Victoria Healthcare Facility	Victoria, TX	—	(a)	328	12,908	—	328	12,908	13,236	1,078	2013	—	10/04/2019
Victoria Healthcare Facility II	Victoria, TX	—	(a)	446	12,986	—	446	12,986	13,432	1,074	1998	—	10/04/2019
Webster Healthcare Facility II	Webster, TX	—	(a)	7,371	243,983	4,584	7,371	248,567	255,938	19,913	2014	2019	10/04/2019
Wilkes-Barre Healthcare Facility	Mountain Top, PA	—	(a)	821	4,139	—	821	4,139	4,960	388	2012	—	10/04/2019
Yucca Valley Healthcare Facility	Yucca Valley, CA	—	(a)	901	4,788	—	901	4,788	5,689	465	2009	—	10/04/2019
Tucson Healthcare Facility II	Tucson, AZ	—	(a)	—	—	25,324	—	25,324	25,324	1,102	2021	—	12/26/2019
Tucson Healthcare Facility III	Tucson, AZ	—	(a)	1,763	—	8,177	1,763	8,177	9,940	668	2020	—	12/27/2019
Grimes Healthcare Facility	Grimes, IA	—	(a)	831	3,690	—	831	3,690	4,521	309	2018	—	02/19/2020

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					Initial Cost				Cost Capitalized Subsequent to Acquisition (b)		Gross Amount Carried at December 31, 2022
Property Description	Location	Encumbrances			Land		Buildings and Improvements				Land		Buildings and Improvements (c)		Total		Accumulated Depreciation (d)		Year Constructed	Year Renovated	Date Acquired
Tampa Healthcare Facility	Tampa, FL	—		(a)	—		10,297		—		—		10,297		10,297		794		2015	—	09/08/2020
Tucson Healthcare Facility IV	Tucson, AZ	—			—		58		17,445		—		17,503		17,503		558		2022	—	12/22/2020
Greenwood Healthcare Facility	Greenwood, IN	—		(a)	1,603		22,588		—		1,603		22,588		24,191		1,004		2008	2018	04/19/2021
Clive Healthcare Facility II	Clive, IA	—		(a)	1,555		17,898		—		1,555		17,898		19,453		547		2008	—	12/08/2021
Clive Healthcare Facility III	Clive, IA	—		(a)	843		12,299		—		843		12,299		13,142		322		2008	—	12/08/2021
Clive Healthcare Facility IV	Clive, IA	—		(a)	720		7,863		—		720		7,863		8,583		255		2009	2018	12/08/2021
Clive Undeveloped Land	Clive, IA	—			1,061		—		—		1,061		—		1,061		—		—	—	12/08/2021
Clive Undeveloped Land II	Clive, IA	—			460		—		—		460		—		460		—		—	—	12/08/2021
Yukon Healthcare Facility	Yukon, OK	—			1,288		16,779		—		1,288		16,779		18,067		369		2020	—	03/10/2022
Pleasant Hills Healthcare Facility	Pleasant Hills, PA	—			922		12,905		—		922		12,905		13,827		270		2015	—	05/12/2022
Prosser Healthcare Facility I	Prosser, WA	—			282		1,933		—		282		1,933		2,215		40		2020	—	05/20/2022
Prosser Healthcare Facility II	Prosser, WA	—			95		3,374		—		95		3,374		3,469		68		2013	2019	05/20/2022
Prosser Healthcare Facility III	Prosser, WA	—			59		2,070		—		59		2,070		2,129		41		2013	—	05/20/2022
Tampa Healthcare Facility II	Tampa, FL	—			—		47,042		—		—		47,042		47,042		572		2022	—	07/20/2022
Escondido Healthcare Facility	Escondido, CA	—			—		57,675		—		—		57,675		57,675		680		2021	—	07/21/2022
		$	—		$	167,362	$	1,857,705	$	64,133	$	163,419	$	1,925,781	$	2,089,200	$	209,118

(a)Property is contributed to the pool of unencumbered properties of the Company's credit facility. As of December 31, 2022, 124 commercial real estate properties were contributed to the pool of unencumbered properties under the Company's credit facility and we had an outstanding principal balance of $583,000,000.

(b)The reduction to costs capitalized subsequent to acquisition primarily include impairment charges, property dispositions and other adjustments.

(c)The aggregated cost for federal income tax purposes is approximately $2,284,522,000 (unaudited).

(d)The Company’s assets are depreciated or amortized using the straight-line method over the useful lives of the assets by class. Generally, buildings and improvements are depreciated over 15-40 years and tenant improvements are depreciated over the shorter of lease term or expected useful life.

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NOTES TO SCHEDULE III — REAL ESTATE ASSETS AND ACCUMULATED DEPRECIATION

December 31, 2022

(in thousands)

	Year Ended December 31,
	2022		2021		2020
Real Estate:
Balance at beginning of year	$	2,015,330	$	2,890,958	$	2,896,766
Additions:
Acquisitions	144,424		66,890		14,876
Improvements	4,735		23,288		31,260
Other adjustments	182		978		—
Deductions:
Impairment	(53,230)		(29,673)		—
Dispositions	(22,241)		(936,594)		(51,944)
Other adjustments	—		(517)		—
Balance at end of year	$	2,089,200	$	2,015,330	$	2,890,958
Accumulated Depreciation:
Balance at beginning of year	$	(165,784)	$	(197,134)	$	(128,304)
Additions:
Depreciation	(51,584)		(56,999)		(69,623)
Deductions:
Impairment	8,250		2,507		—
Dispositions	—		85,325		793
Other adjustments	—		517		—
Balance at end of year	$	(209,118)	$	(165,784)	$	(197,134)

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EXHIBIT INDEX

Effective September 30, 2020, Carter Validus Mission Critical REIT II, Inc., Carter Validus Operating Partnership II, LP, CVMC REIT II, LLC, CVOP Partner, LLC, Carter/Validus Operating Partnership, LP and CV Manager, LLC changed their names to Sila Realty Trust, Inc., Sila Realty Operating Partnership, LP, Sila REIT, LLC, Sila Partner, LLC, Sila Operating Partnership, LP and Sila Realty Management Company, LLC, respectively. With respect to documents executed prior to the name change, the following Exhibit List refers to the entity names used prior to the name changes in order to accurately reflect the names of the entities that appear on such documents.

Exhibit No:
3.1	Third Articles of Amendment and Restatement (included as Exhibit 3.1 to the Registrant's Current Report on Form 8-K (File No. 000-55435) filed on August 15, 2022, and incorporated herein by reference).
3.2	Amended and Restated Bylaws of Carter Validus Mission Critical REIT II, Inc. (included as Exhibit 3.2 to Pre-Effective Amendment No. 3 to the Registrant’s Registration Statement on Form S-11 (File No. 333-191706) filed May 9, 2014, and incorporated herein by reference).
4.1	Subscription Agreement and Subscription Agreement Signature Page (included as Appendix B to the prospectus, incorporated by reference to the Registrant's final prospectus filed pursuant to Rule 424(b)(3), filed on November 27, 2017 (File No. 333-217579)).
4.2	Additional Subscription Agreement and Subscription Agreement Signature Page (included as Appendix C to the prospectus. incorporated by reference to the Registrant's final prospectus filed pursuant to Rule 424(b)(3), filed on November 27. 2017 (File No. 333-217579)).
4.3	Automatic Purchase Program Enrollment Form (included as Appendix D to the prospectus, incorporated by reference to the Registrant's final prospectus filed pursuant to Rule 424(b)(3), filed on November 27, 2017, and incorporated herein by reference).
4.4	Third Amended and Restated Distribution Reinvestment Plan (included as Appendix E to the prospectus attached to Post-Effective Amendment No. 11 to the Registrant’s Registration Statement on Form S-11 (File No. 333-191706) filed on January 20, 2017, and incorporated herein by reference).
4.5	Fourth Amended and Restated Distribution Reinvestment Plan (included as Appendix A in the prospectus that is part of the Registrant's Registration Statement on Form S-3 (File No. 333-220940), filed on December 6, 2017, and incorporated herein by reference).
4.6	Form of Multi-Product Subscription Agreement (included as Appendix F to the prospectus, incorporated by reference to the Registrant's final prospectus filed pursuant to Rule 424(b)(3), filed on February 10, 2017 (File No. 333-191706)).
4.7*	Description of Capital Stock Registered Under Section 12 of the Securities Exchange Act of 1934, as amended.
10.1†	Form of Amended Deferred Stock Award Agreement (included as Exhibit 10.1 to the Registrant's Current Report on Form 8-K (File No. 000-55435) filed on September 10, 2021, and incorporated herein by reference).
10.2	Revolving Credit Agreement, dated as of February 15, 2022, among Sila Realty Trust, Inc., as Borrower, the lenders from time to time as party to this agreement, the issuing banks from time to time as party to the Revolving Credit Agreement, Truist Bank, as Administrative Agent, Hancock Whitney Bank, as Documentation Agent, Truist Securities, Inc., BMO Capital Markets Corp., Capital One, National Association, and Wells Fargo Securities LLC, as Co-Syndication Agents, and Truist Securities, Inc., BMO Capital Markets Corp., Capital One, National Association, and Wells Fargo Securities LLC, as Joint Lead Arrangers and Joint Book Runners (included as Exhibit 10.1 to the Registrant's Current Report on Form 8-K (File No. 000-55435) filed on February 22, 2022, and incorporated herein by reference).
10.3	Term Loan Agreement, dated as of February 15, 2022, among Sila Realty Trust, Inc., as Borrower, the lenders from time to time as party to the Term Loan Agreement, Truist Bank, as Administrative Agent, and Truist Securities, Inc., BMO Capital Markets Corp., Capital One, National Association, and Wells Fargo Securities LLC as Joint Lead Arrangers and Joint Book Runners (included as Exhibit 10.2 to the Registrant's Current Report on Form 8-K (File No. 000-55435) filed on February 22, 2022, and incorporated herein by reference).
10.4	Guaranty Agreement (Revolving Credit Agreement), dated as of February 15, 2022, by and among Sila Realty Operating Partnership, LP, Sila Operating Partnership, LP, and Sila REIT, LLC, each a Required Guarantor, and collectively, the Required Guarantors, and each of the subsidiaries of Sila Realty Trust, Inc., as Borrower, that are signatories to the agreement and each additional guarantor that may become a party to the Guaranty Agreement, individually and collectively, jointly and severally, the Guarantors, to and for the benefit of Truist Bank, as Administrative Agent, for itself and the lenders listed in the Guaranty Agreement (included as Exhibit 10.3 to the Registrant's Current Report on Form 8-K (File No. 000-55435) filed on February 22, 2022, and incorporated herein by reference).

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10.5	Guaranty Agreement (Term Loan Agreement), dated as of February 15, 2022, by and among Sila Realty Operating Partnership, LP, Sila Operating Partnership, LP, and Sila REIT, LLC, each a Required Guarantor, and collectively, the Required Guarantors, and each of the subsidiaries of Sila Realty Trust, Inc., as Borrower, that are signatories to the agreement and each additional guarantor that may become a party to the Guaranty Agreement, individually and collectively, jointly and severally, the Guarantors, to and for the benefit of Truist Bank, as Administrative Agent, for itself and the lenders listed in the Guaranty Agreement (included as Exhibit 10.4 to the Registrant's Current Report on Form 8-K (File No. 000-55435) filed on February 22, 2022, and incorporated herein by reference).
10.6	Term Loan Agreement, dated as of May 17, 2022, by and among Sila Realty Trust, Inc., as Borrower, the lenders from time to time as party to the Term Loan Agreement, Truist Bank, as Administrative Agent, and Truist Securities, Inc., BMO Capital Markets Corp., Capital One, National Association, and Wells Fargo Securities LLC as Joint Lead Arrangers and and Joint Book Runners (included as exhibit 10.1 to the Registrant's Current Report on Form 8-K (File No. 000-55435) filed on May 18, 2022, and incorporated herein by reference).
10.7	Guaranty Agreement, dated as of May 17, 2022, by and among Sila Realty Operating Partnership, LP, Sila Operating Partnership, LP, and Sila REIT, LLC, each a Required Guarantor, and collectively, the Required Guarantors, and each of the subsidiaries of Sila Realty Trust, Inc., as Borrower, that are signatories to the agreement and each additional guarantor that may become a party to the Guaranty Agreement, individually and collectively, jointly and severally, the Guarantors, to and for the benefit of Truist Bank, as Administrative Agent, for itself and the lenders listed in the Guaranty Agreement Runners (included as Exhibit 10.2 to the Registrant's Current Report on Form 8-K (File No. 000-55435) filed on May 18, 2022, and incorporated herein by reference).
10.8†	Amendment to Employment Agreement made and entered into on June 21, 2022, by and between Sila Realty Trust, Inc., Sila Realty Operating Partnership, LP, Sila Realty Management Company, LLC and Michael A. Seton (included as Exhibit 10.1 to the Registrant’s Current Report on Form 8-K (File No. 000-55435) filed on June 21, 2022, and incorporated herein by reference).
10.9†	Amendment to Employment Agreement made and entered into on June 21, 2022, by and between Sila Realty Trust, Inc., Sila Realty Operating Partnership, LP, Sila Realty Management Company, LLC and Mary (“Kay”) C. Neely (included as Exhibit 10.2 to the Registrant’s Current Report on Form 8-K (File No. 000-55435) filed on June 21, 2022, and incorporated herein by reference).
21.1*	List of the Company's Significant Subsidiaries
23.1*	Consent of KPMG LLP, Independent Registered Public Accounting Firm
31.1*	Certification of Chief Executive Officer, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2*	Certification of Chief Financial Officer, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1**	Certification of Chief Executive Officer of the Company, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2**	Certification of Chief Financial Officer of the Company, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
99.1*	Consent of Cushman & Wakefield of Pennsylvania, LLC
101.INS*	XBRL Instance Document
101.SCH*	Inline XBRL Taxonomy Extension Schema Document
101.CAL*	Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF*	Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB*	Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE*	Inline XBRL Taxonomy Extension Presentation Linkbase Document
104*	Cover Page Interactive Data File (embedded within the Inline XBRL document and contained in Exhibit 101).

*	Filed herewith.
**	Furnished herewith in accordance with Item 601(b)(32) of Regulation S-K, this Exhibit is not deemed “filed” for purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities of that section. Such certifications will not be deemed incorporated by reference into any filing under the Securities Act, except to the extent that the registrant specifically incorporates it by reference.
†	Management contract or compensatory plan.

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Item 16. Form 10-K Summary.

The Company has elected not to provide summary information.

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

		SILA REALTY TRUST, INC.
		(Registrant)
Date: March 16, 2023	By:	/s/    MICHAEL A. SETON
		Michael A. Seton
		Chief Executive Officer
		(Principal Executive Officer)
Date: March 16, 2023	By:	/s/    KAY C. NEELY
		Kay C. Neely
		Chief Financial Officer
		(Principal Financial Officer and Principal Accounting Officer)

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

Name	Capacity	Date
/s/    MICHAEL A. SETON	Chief Executive Officer, Director and President	March 16, 2023
Michael A. Seton	(Principal Executive Officer)
/s/    KAY C. NEELY	Chief Financial Officer, Executive Vice President and Treasurer	March 16, 2023
Kay C. Neely	(Principal Financial Officer and
	Principal Accounting Officer)
/s/    JONATHAN KUCHIN	Chairman of the Board of Directors	March 16, 2023
Jonathan Kuchin
/s/    Z. JAMIE BEHAR	Director	March 16, 2023
Z. Jamie Behar
/s/    ADRIENNE KIRBY	Director	March 16, 2023
Adrienne Kirby
/s/    VERETT MIMS	Director	March 16, 2023
Verett Mims
/s/    ROGER PRATT	Director	March 16, 2023
Roger Pratt

EX-4.7

EXHIBIT 4.7

DESCRIPTION OF CAPITAL STOCK

The following is a summary of certain terms of capital stock of Sila Realty Trust, Inc. (“Sila”), Sila’s charter, Sila’s bylaws, and certain provisions of the Maryland General Corporation Law (“MGCL”) governing real estate investment trusts formed under Maryland law. The following summary is not complete and is subject to, and qualified in its entirety by reference to, the applicable provisions of Sila’s charter and bylaws and the applicable provisions of the MGCL. The following summary should be read in conjunction with Sila’s charter and bylaws and the applicable provisions of the MGCL for complete information on Sila’s capital stock. Sila’s charter, as amended and supplemented, and bylaws, as amended and restated, are incorporated by reference as exhibits to the Annual Report on Form 10-K of which this exhibit is a part.

When used in this section, unless otherwise specifically stated or the context requires otherwise, the terms “we,” “us” or “our” refer to Sila.

Our charter authorizes us to issue up to 610,000,000 shares of stock, of which 510,000,000 shares are classified as common stock at $0.01 par value per share, and 100,000,000 shares are classified as preferred stock with a par value of $0.01 per share. Of the total shares of common stock authorized, 185,000,000 are classified as Class A common stock, 75,000,000 are classified as Class I common stock, 175,000,000 are classified as Class T common stock and 75,000,000 are designated as Class T2 common stock.

As of December 31, 2022, 181,335,102 and 168,444,982 shares of our Class A common stock were issued and outstanding, respectively, 17,462,957 and 16,744,525 shares of our Class I common stock were issued and outstanding, respectively, 42,586,248 and 41,066,462 shares of our Class T common stock were issued and outstanding, respectively, and 41,025 and 0 shares of our Class T2 common stock were issued and outstanding, and no preferred stock was issued and outstanding.

We raised the equity capital for our real estate investments through two public offerings (the “Offerings”), from May 2014 through November 2018, and we have offered shares pursuant to our distribution reinvestment plan (the “DRIP”), pursuant to two Registration Statements on Form S-3 (together the “DRIP Offerings” and each a “DRIP Offering”), since November 2017. In May 2022, all outstanding shares of Class T2 common stock (including associated shares of Class T2 DRIP common stock) were converted into shares of Class I common stock. As of December 31, 2022, we had accepted investors’ subscriptions for and issued approximately 157,508,000 shares of Class A, Class I, Class T and Class T2 common stock in our Offerings, resulting in receipt of gross proceeds of approximately $1,520,086,000, before share repurchases of $135,701,000, selling commissions and dealer manager fees of approximately $96,734,000 and other offering costs of approximately $27,631,000.

Our board of directors, with the approval of a majority of our entire board of directors and without any action taken by our stockholders, may amend our charter from time to time to increase or decrease the aggregate number of our authorized shares or the number of shares of any class or series that we have authority to issue. Other than the differing fees with respect to each class and the payment of a distribution and servicing fee out of cash otherwise distributable to Class T2 stockholders, shares of Class A common stock, Class I common stock, Class T common stock and Class T2 common stock generally have identical rights and privileges, such as identical voting rights. The net proceeds from the sale of the different share classes will be commingled for investment purposes and all earnings from all of the investments will proportionally accrue to each share regardless of the class.

Each share of Class A common stock, Class I common stock, Class T common stock, and Class T2 common stock is entitled to participate in distributions on its respective class of shares

when and as authorized by our board of directors and declared by us and in the distribution of our assets upon liquidation. The estimated value per share will be calculated on a company-wide basis, with any adjustments to shares of Class A common stock, Class I common stock, Class T common stock or Class T2 common stock made subsequent to such company-wide calculation. The per share amount of distributions on Class A shares, Class I shares, Class T shares and Class T2 shares will likely differ because of different allocations of class-specific expenses. In addition, as a result of the allocation of the distribution and servicing fee to the shares of Class T2 common stock, the shares of Class T2 common stock could have a lower NAV per share if distributions on the shares of Class T2 common stock are not adjusted to take account of such fee. See “-Distribution Policy” below. The MGCL permits a corporation to issue stock in exchange for future payment or stock that is assessable. Shares of common stock are not subject to mandatory redemption. The shares of common stock have no preemptive rights (which are intended to insure that a stockholder has the right to maintain the same ownership interest on a percentage basis before and after the issuance of additional securities) or cumulative voting rights (which are intended to increase the ability of smaller groups of stockholders to elect directors).

Shares are currently held in “uncertificated” form, which eliminates the physical handling and safekeeping responsibilities inherent in owning transferable stock certificates and eliminates the need to return a duly executed stock certificate to the transfer agent to effect a transfer.

Our charter also contains a provision permitting our board of directors, by resolution, to classify or reclassify any unissued common stock or preferred stock into one or more classes or series of stock and establish the preferences, conversion or other rights, voting powers, restrictions, limitations as to dividends or other distributions, qualifications, or terms or conditions of redemption of any new class or series of stock, subject to certain restrictions, including the express terms of any class or series of stock outstanding at the time. We believe that the power to classify or reclassify unissued shares of stock and thereafter issue the classified or reclassified shares provides us with increased flexibility in structuring possible future financings and acquisitions and in meeting other needs that might arise.

Common Stock

Voting Rights

Shares of Class A common stock, Class I common stock, Class T common stock and Class T2 common stock vote together as a single class, and each share is entitled to one vote on each matter submitted to a vote at a meeting of our stockholders; provided that with respect to any matter that would only have a material adverse effect on the rights of a particular class of common stock, that relates solely to the particular class or in which the interests of the particular class differ from the interests of any other offering, only the holders of such affected class are entitled to vote. Generally, all matters to be voted on by stockholders at a meeting of stockholders duly called and at which a quorum is present must be approved by a majority of the votes cast by the holders of all shares of common stock present in person or represented by proxy, voting together as a single class, subject to any voting rights granted to holders of any preferred stock, although the affirmative vote of a majority of shares of common stock present in person or by proxy at a meeting at which a quorum is present is necessary to elect each director.

Rights Upon Liquidation

In the event of any voluntary or involuntary liquidation, dissolution or winding up of us, or any liquidating distribution of our assets, then such assets, or the proceeds therefrom, will be distributed between the holders of shares of Class A common stock, Class I common stock, Class T common stock, and Class T2 common stock ratably in proportion to their respective estimated

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per share NAV for each class until the estimated per share NAV for each class has been paid. Each holder of shares of a particular class of common stock will be entitled to receive, ratably with each other holder of shares of such class, that portion of such aggregate assets available for distribution as the number of outstanding shares of such class held by such holder bears to the total number of outstanding shares of such class then outstanding.

Preferred Stock

Our charter authorizes our board of directors, without stockholder approval, to designate and authorize us to issue one or more classes or series of preferred stock and to set or change the preferences, conversion or other rights, voting powers, restrictions, limitations as to dividends or other distributions and qualifications or terms or conditions of redemption of each class of shares so issued. Because our board of directors has the power to establish the preferences and rights of each class or series of preferred stock, it may afford the holders of any series or class of preferred stock preferences, powers, and rights senior to the rights of holders of common stock. If we ever create and issue preferred stock with a distribution preference over common stock, payment of any distribution preferences of outstanding preferred stock would reduce the amount of funds available for the payment of distributions on the common stock. Further, holders of preferred stock are normally entitled to receive a preference payment if we liquidate, dissolve, or wind up before any payment is made to the common stockholders, likely reducing the amount common stockholders would otherwise receive upon such an occurrence.

Our board of directors, without stockholder approval, may authorize us to issue preferred stock with conversion rights that could adversely affect the holders of common stock. We currently have no preferred stock issued or outstanding. Our board of directors has no present plans to issue shares of preferred stock, but it may do so at any time in the future without stockholder approval.

Meetings and Special Voting Requirements

Subject to our charter restrictions on ownership and transfer of our stock and the terms of each class or series of stock, each holder of common stock is entitled at each meeting of stockholders to one vote per share owned by such stockholder on all matters submitted to a vote of stockholders, including the election of directors. There is no cumulative voting in the election of our board of directors, which means that the holders of a majority of shares of our outstanding stock entitled to vote generally in the election of directors can elect all of the directors then standing for election and the holders of the remaining shares of common stock will not be able to elect any directors.

Under Maryland law, a Maryland corporation generally cannot dissolve, amend its charter, merge, convert, sell all or substantially all of its assets, engage in a share exchange or engage in similar transactions outside the ordinary course of business, unless declared advisable by our board of directors and approved by the affirmative vote of stockholders entitled to cast at least two-thirds of the votes entitled to be cast on the matter that may properly be considered at the meeting. However, a Maryland corporation may provide in its charter for approval of these matters by a lesser percentage, but not less than a majority of all of the votes entitled to be cast on the matter. Our charter provides for approval of these matters by the affirmative vote of stockholders entitled to cast a majority of all the votes entitled to be cast.

Restrictions on Ownership and Transfer

In order for us to maintain our qualification as a REIT under the Internal Revenue Code, we must meet the following criteria regarding our stockholders’ ownership of our shares:

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five or fewer individuals (as defined in the Internal Revenue Code to include specified private foundations, employee benefit plans and trusts and charitable trusts) may not own, directly or indirectly, more than 50% in value of our outstanding shares during the last half of a taxable year, other than our first REIT taxable year; and

100 or more persons must beneficially own our shares during at least 335 days of a taxable year of twelve months or during a proportionate part of a shorter taxable year, other than our first REIT taxable year.

We may prohibit certain acquisitions and transfers of shares so as to ensure our continued qualification as a REIT under the Internal Revenue Code. However, there can be no assurance that this prohibition will be effective. Because we believe it is essential for us to qualify as a REIT, and, once qualified, to continue to qualify, among other purposes, our charter provides (subject to certain exceptions) that no person may beneficially or constructively own more than 9.8% in value of the aggregate of our outstanding shares of stock or more than 9.8% (in value or number of shares, whichever is more restrictive) of our outstanding shares of common stock.

Our board of directors, in its sole discretion, may prospectively or retroactively waive this ownership limit if evidence satisfactory to our directors is presented that such ownership will not then or in the future jeopardize our status as a REIT and if certain other representations and undertakings required by our charter are received. Also, these restrictions on transfer and ownership will not apply if our directors determine that it is no longer in our best interests to qualify as a REIT.

Additionally, our charter prohibits the transfer of ownership of our stock if such transfer or ownership would:

result in any person owning, directly or indirectly, shares of our stock in excess of the foregoing ownership limitations;

with respect to transfers only, result in our stock being beneficially owned by fewer than 100 persons, determined without reference to any rules of attribution;

result in our being “closely held” within the meaning of Section 856(h) of the Internal Revenue Code (regardless of whether the ownership interest is held during the last half of a taxable year);

result in our owning, directly or indirectly, an interest in any tenant or subtenant if the income derived from such tenant would cause us to fail to satisfy any of the gross income requirements of Section 856(c) of the Code; or

otherwise result in our disqualification as a REIT.

Any attempted transfer of our stock which, if effective, would result in our stock being beneficially owned by fewer than 100 persons will be null and void. In the event of any attempted transfer of our stock which, if effective, would result in (i) violation of the ownership limit discussed above, (ii) in our being “closely held” under Section 856(h) of the Internal Revenue Code, (iii) our owning (directly or indirectly) an interest in any tenant or subtenant that would violate the restriction noted above or (iv) our otherwise failing to qualify as a REIT, then the number of shares causing the violation (rounded up to the nearest whole share) will be automatically transferred to a trust for the exclusive benefit of one or more charitable beneficiaries, and the proposed transferee will not acquire any rights in the shares. To avoid confusion, these shares so transferred to a beneficial trust will be referred to in this prospectus as “Excess Securities.” Excess Securities will remain issued and outstanding shares and will be

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entitled to the same rights and privileges as all other shares of the same class or series. The trustee of the beneficial trust, as holder of the Excess Securities, will be entitled to receive all distributions authorized by our board of directors and declared by us on such securities for the benefit of the charitable beneficiary. Our charter further entitles the trustee of the beneficial trust to exercise all voting rights of the Excess Securities. Subject to Maryland law, the trustee will also have the authority (i) to rescind as void any vote cast by the intended transferee prior to our discovery that the shares have been transferred to the trust and (ii) to recast the vote in accordance with the desires of the trustee acting for the benefit of the charitable beneficiary. However, if we have already taken irreversible corporate action, then the trustee will not have the authority to rescind and recast the vote.

The trustee of the beneficial trust will select a transferee to whom the Excess Securities may be sold as long as such sale does not violate the 9.8% ownership limits or the other restrictions on ownership and transfer. Upon sale of the Excess Securities, the intended transferee (the transferee of the Excess Securities whose ownership would have violated the 9.8% ownership limit or the other restrictions on ownership and transfer) will receive from the trustee of the beneficial trust the lesser of such sale proceeds, or the price per share the intended transferee paid for the Excess Securities (or, in the case of a gift or devise to the intended transferee, the price per share equal to the market value per share on the date of the transfer to the intended transferee). The trustee may reduce the amount payable to the intended transferee by the amount of dividends and other distributions which have been paid to the intended transferee and are owed by the intended transferee to the trustee. The trustee of the beneficial trust will distribute to the charitable beneficiary any amount the trustee receives in excess of the amount to be paid to the intended transferee.

In addition, we will have the right to purchase any Excess Securities at the lesser of (i) the price per share paid in the transfer that created the Excess Securities (or, in the case of a devise or gift, the market price at the time of such devise or gift) and (ii) the market price on the date we, or our designee, exercise such right. We may reduce the amount payable to the intended transferee by the amount of dividends and other distributions which have been paid to the intended transferee and are owed by the intended transferee to the trustee and pay the amount of such reduction to the trustee for the benefit of the charitable beneficiary. We will have the right to purchase the Excess Securities until the trustee has sold the shares. Upon a sale to us, the interest of the charitable beneficiary in the shares sold will terminate and the trustee will distribute the net proceeds of the sale to the intended transferee.

Any person who (i) acquires or attempts or intends to acquire shares in violation of the foregoing ownership limitations, or (ii) would have owned shares that resulted in a transfer to a charitable trust, is required to give us immediate written notice of such transaction or, in the case of a proposed or attempted transaction, 15 days’ prior written notice of such proposed or attempted transaction. In both cases, such persons must provide to us such other information as we may request in order to determine the effect, if any, of such transfer on our status as a REIT. The foregoing restrictions will continue to apply until our board of directors determines it is no longer in our best interest to continue to qualify as a REIT or that compliance is no longer required in order for us to qualify as a REIT.

The ownership restriction does not apply to the underwriter in a public offering or private placement of shares or to a person or persons so exempted (prospectively or retroactively) from the ownership limits by our board of directors based upon appropriate assurances that our qualification as a REIT is not jeopardized and the receipt of certain other representations and undertakings required by our charter. Any person who owns more than 5% of the outstanding shares is required to deliver written notice within 30 days after the end of each taxable year setting forth the name and address of such owner, the number of shares beneficially owned, directly or indirectly, and a description of the manner in which such shares are held. In addition,

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such persons must provide to us such other information as we may request in order to determine the effect, if any, of such beneficial ownership on our status as a REIT.

Distribution Policy

In order to maintain our qualification as a REIT, we generally are required to make aggregate annual distributions to our stockholders of at least 90% of our annual REIT taxable income, determined without regard to the dividends-paid deduction and excluding net capital gain (which such amount does not equal net income, as calculated in accordance with GAAP). Our board of directors may authorize distributions in excess of those required for us to maintain REIT status depending on our financial condition and such other factors as our board of directors deems relevant.

We currently pay regular monthly distributions to our stockholders and we intend to continue to pay regular monthly distributions to our stockholders unless our results of operations, our general financial conditions, general economic conditions, applicable provisions of Maryland law or other factors make it imprudent to do so. We currently calculate our monthly distributions on a daily record and declaration date. Therefore, new investors will be entitled to distributions immediately upon the purchase of their shares. The payment of class-specific expenses will result in different amounts of distributions being paid with respect to each class of shares. The per share amount of distributions on shares of Class A common stock, Class I common stock, Class T common stock and Class T2 common stock will likely differ because of different allocations of class-specific expenses. In addition, as a result of the allocation of the distribution and servicing fee to the shares of Class T common stock and Class T2 common stock, shares of Class T common stock and Class T2 common stock could have a lower NAV per share if distributions on the shares of Class T common stock and Class T2 common stock are not adjusted to take account of such fee. The timing and amount of distributions will be determined by our board of directors, in its discretion, and may vary from time to time. The discretion of our board of directors will be influenced in substantial part by its obligation to cause us to comply with REIT requirements of the Internal Revenue Code.

We generally do not intend to fund distributions from offering proceeds. However, if we do not have enough cash to make distributions, we may borrow, use proceeds from our public offerings, issue additional securities or sell assets in order to fund distributions. We have used sources other than cash flows from operations to fund distributions, and may continue to use such sources to fund distributions, and such distributions constitute a return of capital to stockholders for federal income tax purposes to the extent they exceed our earnings and profits as determined for tax purposes. There is no limit to the amount of distributions we may fund from these sources. We have not established any limit on the amount of proceeds from our public offerings that may be used to fund distributions, except that, in accordance with Maryland law, we may not make distributions that would: (1) cause us to be unable to pay our debts as they become due in the usual course of business; or (2) cause our total assets to be less than the sum of our total liabilities plus senior liquidation preferences, if any. Distributions made from offering proceeds are effectively a return of capital to stockholders from which we will have paid organization and offering expenses in connection with our public offerings.

Share Repurchase Program

Prior to the time that our shares are listed on a national securities exchange, if ever, our Amended and Restated Share Repurchase Program (the “SRP”) as described below, may provide eligible stockholders with limited, interim liquidity by enabling them to sell shares back to us, subject to restrictions and applicable law. We are not obligated to repurchase shares under our SRP.

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We can only repurchase shares due to death and involuntary exigent circumstances in accordance with our SRP, subject in each case to the terms and limitations of the SRP, including, but not limited to, quarterly share limitations, an annual 5.0% share limitation, and DRIP funding limitations. Under our SRP, we may waive certain of the terms and requirements of the SRP in the event of the death of a stockholder who is a natural person, including shares held through an Individual Retirement Account, or IRA, or other retirement or profit-sharing plan, and certain trusts meeting the requirements of the SRP. We may also waive certain of the terms and requirements of the SRP in the event of an involuntary exigent circumstance, as determined by us or any of the executive officers thereof, in our or their sole discretion.

Holding Period. Generally, a stockholder must have beneficially held its Class A shares, Class I shares or Class T shares, as applicable, for at least one year prior to offering them for sale to us through our share repurchase program. A stockholder or a stockholder’s fiduciary, heir or beneficiary may present to us fewer than all of the shares owned for repurchase.

Distribution Reinvestment Plan. In the event that we repurchase all of one stockholder’s shares, any shares that the stockholder purchased pursuant to our DRIP, will be excluded from the one-year holding requirement. In the event that a stockholder requests a repurchase of its shares, and such stockholder is participating in the DRIP, the stockholder will be deemed to have notified us, at the time the stockholder submits the repurchase request, that the stockholder is terminating participation in the DRIP and has elected to receive future distributions in cash. This election for cash distributions will continue in effect even if less than all of the stockholder’s shares are accepted for repurchase unless the stockholder notifies us that the stockholder wishes to re-enroll to participate in the DRIP.

Death of a Stockholder. Subject to the conditions and limitations described below, we may waive certain of the terms and requirements of our share repurchase program in the event of the death of a stockholder who is a natural person, including shares held by such stockholder through an IRA or other retirement or profit-sharing plan, and certain trusts meeting the requirements detailed in this program. With regard to trusts, the right to request a repurchase upon death applies upon the death of the settlor of a trust that holds shares, if the trust becomes irrevocable upon the death of the settlor or settlor’s spouse, or the spouse of a settlor of a trust, if the trust became irrevocable upon the death of the settlor and the settlor’s spouse was the beneficiary of the trust, as applicable, after receiving written notice from the fiduciary appointed for the stockholder’s estate, the recipient of the shares through bequest or inheritance, or, in the case of a trust that becomes irrevocable upon the death of the settlor (or previously became irrevocable upon the death of the settlor’s spouse), the then-serving trustee of such trust, who shall be the sole person authorized to request the repurchase on behalf of the trust. We must receive the written repurchase request within 18 months after the death of the stockholder, the date on which a trust became irrevocable due to death, or the date of death of the settlor’s surviving spouse who was the beneficiary of a trust that became irrevocable due to the death of the settlor, as applicable, in order for the requesting party to rely on any of the special treatment described below that may be afforded in the event of death. Such written request must be accompanied by a certified copy of the official death certificate of the stockholder, settlor, and or settlor’s spouse, as applicable. In addition, written requests in connection with shares held in a trust must include an executed Certification of Trust for Repurchase form, pursuant to which the trustee must agree to indemnify and hold our company harmless from and against any liability arising from the repurchase. If spouses are joint registered holders of the shares, the request to repurchase the shares may be made only if both registered holders are deceased. If the stockholder is not a natural person, as in the case of a trust that does not become irrevocable upon the death of the settlor or the settlor’s spouse (as described above in this paragraph), a partnership, a corporation, a limited liability company, or other similar entity, the right of repurchase upon death does not apply.

Qualifying Disability. Subject to the conditions and limitations described within our SRP, we may waive certain of the terms and requirements of our SRP with respect to shares held by a

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stockholder, including shares held by such stockholder through an IRA or other retirement or profit-sharing plan, with a “Qualifying Disability” as defined in our SRP, after receiving written notice from such stockholder within 18 months from the date that the stockholder becomes subject to the Qualifying Disability; provided that the condition causing the Qualifying Disability was not pre-existing on the date that the stockholder became a stockholder.

Involuntary Exigent Circumstance. Sila or any of its executive officers may, in its or their sole discretion, waive certain of the terms and requirements of our SRP with respect to shares held by a stockholder who is a natural person and certifies in an executed Certification Regarding Exigent Circumstances for Repurchase form, that he or she: (a) has been diagnosed with a condition caused by injury, disease, or illness from which there is no reasonable medical probability of recovery and the stockholder’s life expectancy is less than twenty-four (24) months, as evidenced by a physician certification; and (b) is experiencing financial need, such that, if the repurchase request is not granted, the stockholder would be unable to meet the basic financial obligations to support himself/herself and such stockholder’s dependents, which is referred to as an “Involuntary Exigent Circumstance” in our SRP. Stockholders requesting repurchases due to Involuntary Exigent Circumstance are required to indemnify and hold Sila harmless from and against any liability arising from the repurchase.

Purchase Price. The purchase price for shares repurchased under our SRP will be 100% of the most recent estimated NAV per share of the Class A common stock, Class I common stock or Class T common stock, as applicable (in each case, as adjusted for any stock dividends, combinations, splits, recapitalizations and the like with respect to our common stock). The board of directors will adjust the estimated NAV per share of each our classes of common stock if we have made one or more special distributions to stockholders. The board of directors will determine, in its sole discretion, which distributions, if any, constitute a special distribution.

Timing of Share Repurchases. Repurchases of our shares are at our discretion and generally will be made quarterly upon written request to us by the last day of the applicable quarter. Valid repurchase requests will be honored approximately 30 days following the end of the applicable quarter, which we refer to as the “Repurchase Date.” Stockholders may withdraw their repurchase request at any time up to 15 days prior to the Repurchase Date. If a repurchase request is granted, we or our agent will send the repurchase amount to each stockholder or heir, beneficiary or estate of a stockholder on or about the Repurchase Date.

Repurchase Limitations. We will determine whether we have sufficient funds and/or shares available as soon as practicable after the end of each fiscal quarter, but in any event prior to the applicable Repurchase Date.

a. 5% Share Limitation. During any calendar year, we will not repurchase in excess of 5.0% of the number of shares of common stock outstanding on December 31st of the previous calendar year.

b. Quarterly Share Limitations. We limit the number of shares repurchased each quarter pursuant to our SRP as follows (subject to the DRIP Funding Limitation (as defined below)):

•On the first quarter Repurchase Date, which generally will be January 30 of the applicable year, we will not repurchase in excess of 1.25% of the number of shares outstanding on December 31st of the previous calendar year;

•On the second quarter Repurchase Date, which generally will be April 30 of the applicable year, we will not repurchase in excess of 1.25% of the number of shares outstanding on December 31st of the previous calendar year;

•On the third quarter Repurchase Date, which generally will be July 30 of the applicable year, we will not repurchase in excess of 1.25% of the number of shares outstanding on December 31st of the previous calendar year; and

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•On the fourth quarter Repurchase Date, which generally will be October 30 of the applicable year, we will not repurchase in excess of 1.25% of the number of shares outstanding on December 31st of the previous calendar year.

In the event we do not repurchase 1.25% of the number of shares outstanding on December 31st of the previous calendar year in any particular quarter, we will increase the limitation on the number of shares to be repurchased in the next quarter and continue to adjust the quarterly limitations as necessary in accordance with the 5% annual limitation.

c.    DRIP Funding Limitations. We intend to fund our SRP with proceeds we received during the prior year ended December 31 from the sale of shares pursuant to the DRIP. We will limit the amount of DRIP proceeds used to fund share repurchases in each quarter to 25% of the amount of DRIP proceeds received during the previous calendar year (the “DRIP Funding Limitation”); provided, however, that if we do not reach the DRIP Funding Limitation in any particular quarter, we will apply the remaining DRIP proceeds to the next quarter Repurchase Date and continue to adjust the quarterly limitations as necessary in order to use all of the available DRIP proceeds for a calendar year, if needed. We cannot guarantee that DRIP proceeds will be sufficient to accommodate all requests made each quarter. The board of directors may, in its sole discretion, reserve other operating funds to fund the SRP, but is not required to reserve such funds.

As a result of the limitations described in (a) - (c) above, some or all of a stockholder’s shares may not be repurchased. Each quarter, we will process repurchase requests made in connection with the death of a stockholder, or, in our sole discretion, an Involuntary Exigent Circumstance. If we are unable to process all eligible repurchase requests within a quarter due to the limitations described above or in the event sufficient funds are not available, shares will be repurchased as follows: (i) first, pro rata as to repurchases upon the death of a stockholder; and (ii) second, pro rata as to repurchases to stockholders who demonstrate, in our sole discretion, an Involuntary Exigent Circumstance.

If we do not repurchase all of the shares for which repurchase requests were submitted in any quarter, all outstanding repurchase requests will automatically roll over to the subsequent quarter and priority will be given to the repurchase requests in the subsequent quarter as provided above. A stockholder or his or her estate, heir or beneficiary, as applicable, may withdraw a repurchase request in whole or in part at any time up to 15 days prior to the Repurchase Date.

Deadline for Presentment. A stockholder who wishes to have shares repurchased must mail or deliver to us a written request on a form provided by us and executed by the stockholder, its trustee or authorized agent, which we must receive by the last day of the quarter in which the stockholder is requesting a repurchase of his or her shares. The fiduciary of an estate, heir, beneficiary, or trustee of a trust that wishes to have shares repurchased following the death of a stockholder must mail or deliver to us a written request on a form provided by us, including evidence acceptable to us of the death of the stockholder, and executed by the fiduciary of the estate, the heir or beneficiary, or the trustee, as applicable, which we must receive by the last day of the quarter in which the fiduciary of the estate, heir, beneficiary, or trustee is requesting a repurchase of its shares.

No Encumbrances. All shares presented for repurchase must be owned by the stockholder(s) making the presentment, or the party presenting the shares must be authorized to do so by the owner(s) of the shares. Such shares must be fully transferable and not subject to any liens or encumbrances. Upon receipt of a request for repurchase, we may conduct a Uniform Commercial Code search to ensure that no liens are held against the shares. Any costs in conducting the Uniform Commercial Code search will be borne by us.

Account Minimum. In the event any stockholder fails to maintain a minimum balance of $2,000 of Class A shares, Class I shares, Class T shares, or Class T2 shares, we may repurchase

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all of the shares held by that stockholder at the NAV per share repurchase price in effect on the date we determine that the stockholder has failed to meet the minimum balance.

Termination, Amendment or Suspension of the Program. Our SRP will immediately terminate if our shares are listed on any national securities exchange. In addition, the board of directors may, in its sole discretion, suspend (in whole or in part) our SRP at any time and from time to time upon notice to our stockholders and may, in its sole discretion amend or terminate our SRP at any time upon 30 days’ prior notice to our stockholders for any reason it deems appropriate. Because we generally only repurchase shares on a quarterly basis, depending upon when during the quarter the board of directors makes this determination, it is possible that you would not have any additional opportunities to have your shares repurchased under the prior terms of the program, or at all, upon receipt of the notice. Because share repurchases will be funded with the net proceeds we receive from the sale of shares under our DRIP or other operating funds reserved by the board of directors in its sole discretion, the discontinuance or termination of the DRIP or the board of directors’ decision not to reserve other operating funds to fund our SRP would adversely affect our ability to repurchase shares under our SRP. We will notify our stockholders of such developments: (1) in a current report on Form 8-K, an annual report on Form 10-K or a quarterly report on Form 10-Q; or (2) by means of a separate mailing to you.

Stockholder Liability

The Maryland General Corporation Law provides that our stockholders:

are not liable personally or individually in any manner whatsoever for any debt, act, omission or obligation incurred by us or our board of directors; and

are under no obligation to us or our creditors with respect to their shares other than the obligation to pay to us the full amount of the consideration for which their shares were issued.

Business Combinations

Under Maryland law, certain “business combinations” between a Maryland corporation and an interested stockholder or an affiliate of an interested stockholder are prohibited for five years after the most recent date on which the interested stockholder becomes an interested stockholder. These business combinations include a merger, consolidation, share exchange, or, in circumstances specified in the statute, an asset transfer or issuance or reclassification of equity securities. An interested stockholder is defined as:

any person who beneficially owns, directly or indirectly, 10% or more of the voting power of the corporation’s outstanding voting stock; or

an affiliate or associate of the corporation who, at any time within the two-year period prior to the date in question, was the beneficial owner, directly or indirectly, of 10% or more of the voting power of the then outstanding stock of the corporation.

A person is not an interested stockholder under the statute if the board of directors approved in advance the transaction by which the person otherwise would have become an interested stockholder. However, in approving a transaction, our board of directors may provide that its approval is subject to compliance, at or after the time of the approval, with any terms and conditions determined by our board of directors.

10

After the five-year prohibition, any such business combination between the Maryland corporation and an interested stockholder generally must be recommended by our board of directors of the corporation and approved by the affirmative vote of at least:

80% of the votes entitled to be cast by holders of outstanding voting stock of the corporation; and

two-thirds of the votes entitled to be cast by holders of voting stock of the corporation other than shares held by the interested stockholder with whom (or with whose affiliate) the business combination is to be effected or held by an affiliate or associate of the interested stockholder.

These super-majority vote requirements do not apply if the corporation’s common stockholders receive a minimum price, as defined under Maryland law, for their shares in the form of cash or other consideration in the same form as previously paid by the interested stockholder for its shares.

The statute permits various exemptions from its provisions, including business combinations that are exempted by our board of directors before the time that the interested stockholder becomes an interested stockholder.

The business combination statute may discourage others from trying to acquire control of us and increase the difficulty of consummating any offer.

Control Share Acquisitions

With some exceptions, Maryland law provides that a holder of control shares of a Maryland corporation acquired in a control share acquisition has no voting rights except to the extent approved by a vote of stockholders entitled to cast two-thirds of the votes entitled to be cast on the matter, excluding “control shares”:

owned by the acquiring person;

owned by our officers; and

owned by our employees who are also directors.

“Control shares” mean voting shares of stock which, if aggregated with all other shares of stock owned by the acquirer in respect of which the acquirer can exercise or direct the exercise of voting power, would entitle the acquiring person, directly or indirectly, to exercise or direct the exercise of voting power of shares of stock in electing directors within one of the following ranges of voting power:

one-tenth or more, but less than one-third of all voting power;

one-third or more, but less than a majority of all voting power; or

a majority or more of all voting power.

Control shares do not include shares the acquiring person is then entitled to vote as a result of having previously obtained stockholder approval or shares acquired directly from the corporation. A control share acquisition occurs when, subject to some exceptions, a person directly or indirectly acquires ownership or the power to direct the exercise of voting power (except solely by virtue of a revocable proxy) of issued and outstanding control shares. A person

11

who has made or proposes to make a control share acquisition, upon satisfaction of some specific conditions, including an undertaking to pay expenses, may compel our board of directors to call a special meeting of our stockholders to be held within 50 days of a request to consider the voting rights of the control shares. If no request for a meeting is made, we may present the question at any stockholders’ meeting.

If voting rights for control shares are not approved at the meeting or if the acquiring person does not deliver an acquiring person statement on or before the tenth day after the control share acquisition as required by the statute, then, subject to some conditions and limitations, we may redeem any or all of the control shares (except those for which voting rights have been previously approved) for fair value determined, without regard to the absence of voting rights for the control shares, as of the date of any meeting of stockholders at which the voting rights of such shares are considered and not approved or, if no such meeting is held, the date of the last control share acquisition by the acquirer. If voting rights for control shares are approved at a stockholders meeting and the acquirer becomes entitled to vote a majority of the shares entitled to vote, all other stockholders may exercise appraisal rights. The fair value of the shares as determined for purposes of such appraisal rights may not be less than the highest price per share paid by the acquirer in the control share acquisition. The control share acquisition statute does not apply to shares acquired in a merger, consolidation, or statutory share exchange if we are a party to the transaction or to acquisitions approved or exempted by our charter or bylaws.

As permitted by MGCL, our bylaws contain a provision exempting from the control share acquisition statute any and all acquisitions of our stock by any person. There can be no assurance that this provision will not be amended or eliminated at any time in the future.

Subtitle 8

Subtitle 8 of Title 3 of the Maryland General Corporation Law permits the board of directors of a Maryland corporation with a class of equity securities registered under the Exchange Act and at least three independent directors to elect to be subject, by provision in its charter or bylaws or a resolution of its board of directors and notwithstanding any contrary provision in the charter or bylaws, to any or all of five provisions:

a classified board of directors,

a two-thirds vote requirement for removing a director,

a requirement that the number of directors be fixed only by vote of the directors,

a requirement that a vacancy on the board of directors be filled only by affirmative vote of a majority of the remaining directors in office and (if the board of directors is classified) for the remainder of the full term of the class of directors in which the vacancy occurred, and

a majority requirement for the calling of a stockholder-requested special meeting of stockholders.

Our charter provides that except as may be provided by our board of directors in setting the terms of any class or series of preferred stock, we elect to be subject to the provisions of Subtitle 8 relating to the filling of vacancies on our board of directors. We have not elected to be subject to any of the other provisions of Subtitle 8. However, through provisions in our charter and bylaws unrelated to Subtitle 8, we already vest in our board of directors the exclusive power to fix the number of directorships provided that the number is not fewer than three or more than ten.

12

Tender Offers

Our charter provides that any tender offer made by any person, including any “mini-tender” offer, must comply with all of the provisions of Regulation 14D of the Exchange Act that would be applicable to a tender offer for more than 5% of the outstanding shares, including the notice and disclosure requirements. Among other things, the offeror must provide us notice of such tender offer at least ten business days before initiating the tender offer. No stockholder may transfer shares to a non-complying offeror unless such stockholder has first offered the shares to us at the tender offer price in the non-compliant tender offer. In addition, the non-complying offeror will be responsible for all of our expenses in connection with that offeror’s noncompliance.

Conversion Upon Listing

Upon the listing of common stock or a class of common stock for trading on a national securities exchange or such later date or dates not to exceed 12 months from the date of listing as approved by the board of directors with respect to all or any portion of the outstanding shares of any class or classes of common stock that are not so listed, each share of any class or classes of common stock that are not so listed or of such portion thereof will automatically and without any action on the part of the holder thereof convert into a number of shares of common stock that are listed, or of shares of the class of common stock that is listed, equal to a fraction, the numerator of which is the net asset value allocable to each share of the applicable non-listed class of common stock and the denominator of which is the net asset value allocable to each share of common stock or each share of the class of common stock that is listed.

Advance Notice of Director Nominations and New Business

Proposals to elect directors or conduct other business at an annual or special meeting of stockholders must be brought in accordance with our bylaws. The bylaws provide that any business may be transacted at the annual meeting of stockholders without being specifically designated in the notice of meeting. However, with respect to special meetings of stockholders, only the business specified in the notice of the special meeting may be brought at that meeting.

Our bylaws also provide that nominations of individuals for election to our board of directors and the proposal of other business may be made at an annual meeting, but only:

in accordance with the notice of the meeting;

by or at the direction of our board of directors; or

by a stockholder who was a stockholder of record at the time of the giving of notice and at the time of the meeting, who is entitled to vote at the meeting in the election of each individual so nominated or on any such other business and who has complied with the advance notice procedures set forth in our bylaws.

A notice of a director nomination or stockholder proposal to be considered at an annual meeting must be delivered to our secretary at our principal executive offices:

not later than 5:00 p.m., Eastern Time, on the 120th day nor earlier than 150 days prior to the first anniversary of the date of the proxy statement for the previous year’s annual meeting; or

if the date of the annual meeting is advanced or delayed by more than 30 days from the anniversary date of the preceding year’s annual meeting, not earlier than 150 days

13

prior to the annual meeting or not later than 5:00 p.m., Eastern Time, on the later of the 120th day prior to the date of such annual meeting or the tenth day following our first public announcement of the date of the annual meeting.

Nominations of individuals for election to our board of directors may be made at a special meeting, but only:

by or at the direction of our board of directors; or

provided that the meeting has been called in accordance with our bylaws for the purpose of electing directors, by a stockholder who was a stockholder of record at the time of the giving of notice and at the time of the meeting, who is entitled to vote at the meeting in the election of each individual so nominated and who has complied with the advance notice procedures set forth in our bylaws.

A notice of a director nomination to be considered at a special meeting must be delivered to our secretary at our principal executive offices:

not earlier than 120 days prior to the special meeting; and

not later than 5:00 p.m., Eastern Time, on the later of either:

90 days prior to the special meeting; or

ten days following the day of our first public announcement of the date of the special meeting and the nominees proposed by our board of directors to be elected at the meeting.

14

EX-21.1

EXHIBIT 21.1

Significant Subsidiaries of Sila Realty Trust, Inc.

The following list details certain subsidiaries of Sila Realty Trust, Inc. Subsidiaries not included in the list are omitted because they are not significant as permitted by Item 601(b)(21) of Regulation S-K.

Name	Jurisdiction of Organization	Percent of Equity Securities Owned
Sila Realty Operating Partnership, LP	Delaware	100%

#82972380_v1

EX-23.1

EXHIBIT 23.1

Consent of Independent Registered Public Accounting Firm

We consent to the incorporation by reference in the registration statement (No. 333-235469) on Form S-3D of our report dated March 16, 2023, with respect to the consolidated financial statements and financial statement schedule III of Sila Realty Trust, Inc.

/s/ KPMG LLP

Tampa, Florida

March 16, 2023

EX-31.1

Exhibit 31.1

CERTIFICATIONS OF PRINCIPAL EXECUTIVE OFFICER

PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Michael A. Seton, certify that:

1.I have reviewed this Annual Report on Form 10-K of Sila Realty Trust, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: March 16, 2023

 /s/ Michael A. Seton

Michael A. Seton

Chief Executive Officer and President

(Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATIONS OF PRINCIPAL FINANCIAL OFFICER

PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Kay C. Neely, certify that:

1.I have reviewed this Annual Report on Form 10-K of Sila Realty Trust, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: March 16, 2023

 /s/ Kay C. Neely

Kay C. Neely

Chief Financial Officer, Executive Vice President and Treasurer

(Principal Financial Officer)

EX-32.1

Exhibit 32.1

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER

PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

(18 U.S.C 1350)

In connection with the Annual Report on Form 10-K of Sila Realty Trust, Inc., or the Company, for the year ended December 31, 2022, as filed with the Securities and Exchange Commission on the date hereof, or the Report, Michael A. Seton, as Chief Executive Officer of the Company hereby certifies, to the best of his knowledge, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(i) The accompanying Report of the Company fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934, as amended; and

(ii) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: March 16, 2023
	By:	/s/ Michael A. Seton
	Name:	Michael A. Seton
	Title:	Chief Executive Officer and President
		(Principal Executive Officer)

The foregoing certification is being furnished with the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 pursuant to 18 U.S.C. Section 1350. It is not being filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and it is not to be incorporated by reference into any filing of the Company, whether made before or after the date hereof, regardless of any general information language in such filing, except to the extent that the Company specifically incorporates by reference.

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2

Exhibit 32.2

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER

PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

(18 U.S.C 1350)

In connection with the Annual Report on Form 10-K of Sila Realty Trust, Inc., or the Company, for the year ended December 31, 2022, as filed with the Securities and Exchange Commission on the date hereof, or the Report, Kay C. Neely, as Chief Financial Officer of the Company hereby certifies, to the best of her knowledge, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(i) The accompanying Report of the Company fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934, as amended; and

(ii) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: March 16, 2023
	By:	/s/ Kay C. Neely
	Name:	Kay C. Neely
	Title:	Chief Financial Officer and Executive Vice President
		(Principal Financial Officer)

The foregoing certification is being furnished with the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 pursuant to 18 U.S.C. Section 1350. It is not being filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and it is not to be incorporated by reference into any filing of the Company, whether made before or after the date hereof, regardless of any general information language in such filing, except to the extent that the Company specifically incorporates by reference.

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

EX-99.1

EXHIBIT 99.1

CONSENT OF INDEPENDENT VALUATION EXPERT

We hereby consent to the reference to our name and the description of our role in the valuation process of any properties owned by Sila Realty Trust, Inc. and its subsidiaries (collectively, the “Company”) referred to in the Annual Report on Form 10-K for the year ended December 31, 2022, filed with the Securities and Exchange Commission on March 16, 2023 and incorporated by reference in the Company’s Registration Statement on Form S-3 (SEC File No. 333-235469).

In giving such consent, we do not thereby admit we are in the category of persons whose consent is required under Section 7 of the Securities Act of 1933, as amended.

March 16, 2023	/s/ James Farrer
	James Farrer, MAI Senior Managing Director Cushman & Wakefield of Pennsylvania, LLC

XML

Cover - USD ($)

12 Months Ended

Dec. 31, 2022

Mar. 10, 2023

Jun. 30, 2022

Document Type

10-K

Document Annual Report

true

Document Period End Date

Dec. 31, 2022

Document Transition Report

false

Entity File Number

000-55435

Entity Registrant Name

SILA REALTY TRUST, INC.

Entity Incorporation, State or Country Code

MD

Entity Tax Identification Number

46-1854011

Entity Address, Address Line One

1001 Water Street

Entity Address, Address Line Two

Suite 800

Entity Address, City or Town

Tampa

Entity Address, State or Province

FL

Entity Address, Postal Zip Code

33602

City Area Code

813

Local Phone Number

287-0101

Title of 12(b) Security

None

Entity Well-known Seasoned Issuer

No

Entity Voluntary Filers

No

Entity Current Reporting Status

Yes

Entity Interactive Data Current

Yes

Entity Filer Category

Non-accelerated Filer

Entity Small Business

false

Entity Emerging Growth Company

false

ICFR Auditor Attestation Flag

false

Entity Shell Company

false

Amendment Flag

false

Document Fiscal Year Focus

2022

Document Fiscal Period Focus

FY

Entity Central Index Key

0001567925

No Trading Symbol Flag

true

Current Fiscal Year End Date

--12-31

Documents Incorporated by Reference

Documents Incorporated by Reference

Portions of Registrant’s proxy statement for the 2023 annual stockholders meeting, to be filed with the Securities and Exchange Commission within 120 days after the end of the Registrant’s fiscal year ended December 31, 2022, are incorporated by reference in Part III. Items 10, 11, 12, 13 and 14.

Class A

Entity Public Float

$ 1,375,910,800

Entity Common Stock, Shares Outstanding (in shares)

168,631,000

Class I

Entity Public Float

136,029,800

Entity Common Stock, Shares Outstanding (in shares)

16,826,000

Class T

Entity Public Float

333,297,200

Entity Common Stock, Shares Outstanding (in shares)

41,223,000

Class T2

Entity Public Float

$ 0

Entity Common Stock, Shares Outstanding (in shares)

0

XML

Audit Information	12 Months Ended
	Dec. 31, 2022
Audit Information [Abstract]
Auditor Name	KPMG LLP
Auditor Firm ID	185
Auditor Location	Tampa, Florida

XML

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Real estate:
Land	$ 163,419	$ 163,992
Buildings and improvements, less accumulated depreciation of $209,118 and $165,784, respectively	1,716,663	1,648,685
Construction in progress	0	14,628
Total real estate, net	1,880,082	1,827,305
Cash and cash equivalents	12,917	32,359
Acquired intangible assets, less accumulated amortization of $90,239 and $71,067, respectively	167,483	181,639
Goodwill	21,710	23,284
Right-of-use assets	37,443	24,033
Other assets	100,167	66,365
Assets held for sale	0	22,570
Total assets	2,219,802	2,177,555
Liabilities:
Credit facility, net of deferred financing costs of $2,412 and $3,226, respectively	580,588	496,774
Accounts payable and other liabilities	30,619	39,597
Acquired intangible liabilities, less accumulated amortization of $5,923 and $4,444, respectively	11,946	12,962
Total lease liabilities	41,554	26,394
Liabilities held for sale	0	698
Total liabilities	664,707	576,425
Stockholders’ equity:
Preferred stock, $0.01 par value per share, 100,000,000 shares authorized; none issued and outstanding	0	0
Common stock, $0.01 par value per share, 510,000,000 shares authorized; 241,425,332 and 238,226,119 shares issued, respectively; 226,255,969 and 224,179,939 shares outstanding, respectively	2,263	2,242
Additional paid-in capital	2,024,176	2,004,404
Distributions in excess of accumulated earnings	(499,334)	(400,669)
Accumulated other comprehensive income (loss)	27,990	(4,847)
Total stockholders’ equity	1,555,095	1,601,130
Total liabilities and stockholders’ equity	$ 2,219,802	$ 2,177,555

XML

CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Buildings and improvements, accumulated depreciation	$ 209,118	$ 165,784
Acquired intangible assets, accumulated amortization	90,239	71,067
Credit facility, deferred financing costs	2,412	3,226
Acquired intangible liabilities, accumulated amortization	$ 5,923	$ 4,444
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	100,000,000	100,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	510,000,000	510,000,000
Common stock, shares issued (in shares)	241,425,332	238,226,119
Common stock, shares outstanding (in shares)	226,255,969	224,179,939

XML

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Revenue:
Rental revenue	$ 179,986	$ 172,838	$ 165,781
Expenses:
Rental expenses	17,950	17,712	16,397
General and administrative expenses	22,079	21,388	15,471
Internalization transaction expenses	0	0	3,640
Asset management fees	0	0	12,604
Depreciation and amortization	77,199	70,259	69,849
Impairment losses	47,424	27,837	0
Total expenses	164,652	137,196	117,961
Gain on real estate disposition	460	89	3,142
Interest and other expense, net	23,772	34,515	42,025
(Loss) income from continuing operations	(7,978)	1,216	8,937
Income from discontinued operations	0	401,444	27,839
Net (loss) income attributable to common stockholders	(7,978)	402,660	36,776
Other comprehensive income (loss) - unrealized gain (loss) on interest rate swaps, net	32,837	15,597	(15,740)
Comprehensive income attributable to common stockholders	$ 24,859	$ 418,257	$ 21,036
Weighted average number of common shares outstanding:
Basic (in shares)	225,320,043	223,325,293	221,436,617
Diluted (in shares)	225,320,043	224,293,339	221,622,444
Basic:
Basic, continuing operations (in dollars per share)	$ (0.03)	$ 0	$ 0.04
Basic, discontinued operations (in dollars per share)	0	1.80	0.13
Net (loss) income attributable to common stockholders, basic (in dollars per share)	(0.03)	1.80	0.17
Diluted:
Diluted, continuing operations (in dollars per share)	(0.03)	0	0.04
Diluted, discontinued operations (in dollars per share)	0	1.79	0.13
Net (loss) income attributable to common stockholders, diluted (in dollars per share)	$ (0.03)	$ 1.79	$ 0.17

XML

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Total Stockholders’ Equity	Common Stock	Additional Paid-in Capital	Distributions in Excess of Accumulated Earnings	Accumulated Other Comprehensive (Loss) Income	Noncontrolling Interests
Balance, (in shares) at Dec. 31, 2019			221,912,714
Balance, beginning at Dec. 31, 2019	$ 1,738,419	$ 1,738,417	$ 2,219	$ 1,981,848	$ (240,946)	$ (4,704)	$ 2
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock under the distribution reinvestment plan (in shares)			3,531,178
Issuance of common stock under the distribution reinvestment plan	30,553	30,553	$ 35	30,518
Vesting of restricted stock (in shares)			10,500
Stock-based compensation	437	437		437
Purchase of noncontrolling interest	(2)						(2)
Distribution and servicing fees	51	51		51
Other offering costs	(40)	(40)		(40)
Repurchase of common stock (in shares)			(3,408,870)
Repurchase of common stock	(29,487)	(29,487)	$ (34)	(29,453)
Distributions to common stockholders	(107,094)	(107,094)			(107,094)
Other comprehensive income (loss)	(15,740)	(15,740)				(15,740)
Net income (loss)	36,776	36,776			36,776
Balance, (in shares) at Dec. 31, 2020			222,045,522
Balance, ending at Dec. 31, 2020	1,653,873	1,653,873	$ 2,220	1,983,361	(311,264)	(20,444)	$ 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock under the distribution reinvestment plan (in shares)			3,243,363
Issuance of common stock under the distribution reinvestment plan	27,584	27,584	$ 33	27,551
Vesting of restricted stock (in shares)			24,955
Stock-based compensation		2,379		2,379
Distribution and servicing fees		639		639
Other offering costs		(9)		(9)
Repurchase of common stock (in shares)			(1,133,901)
Repurchase of common stock		(9,528)	$ (11)	(9,517)
Distributions to common stockholders		(492,065)			(492,065)
Other comprehensive income (loss)		15,597				15,597
Net income (loss)	$ 402,660	402,660			402,660
Balance, (in shares) at Dec. 31, 2021	224,179,939		224,179,939
Balance, ending at Dec. 31, 2021		1,601,130	$ 2,242	2,004,404	(400,669)	(4,847)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock under the distribution reinvestment plan (in shares)			3,026,326
Issuance of common stock under the distribution reinvestment plan	$ 24,834	24,834	$ 30	24,804
Vesting of restricted stock (in shares)			172,887
Stock-based compensation		4,180	$ 2	4,178
Other offering costs		(4)		(4)
Repurchase of common stock (in shares)			(1,123,183)
Repurchase of common stock		(9,217)	$ (11)	(9,206)
Distributions to common stockholders		(90,687)			(90,687)
Other comprehensive income (loss)		32,837				32,837
Net income (loss)	$ (7,978)	(7,978)			(7,978)
Balance, (in shares) at Dec. 31, 2022	226,255,969		226,255,969
Balance, ending at Dec. 31, 2022		$ 1,555,095	$ 2,263	$ 2,024,176	$ (499,334)	$ 27,990

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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Cash flows from operating activities:
Net (loss) income attributable to common stockholders	$ (7,978)	$ 402,660	$ 36,776
Adjustments to reconcile net (loss) income attributable to common stockholders to net cash provided by operating activities:
Depreciation and amortization	77,199	82,018	105,476
Amortization of deferred financing costs	1,679	3,425	3,884
Amortization of above- and below-market leases	484	(1,098)	(4,680)
Other amortization expenses	2,302	3,269	1,190
Gain on real estate disposition from continuing operations	(460)	(89)	(3,142)
Gain on real estate dispositions of discontinued operations	0	(395,801)	0
Loss on extinguishment of debt	3,367	28,751	0
Impairment losses	47,424	27,837	0
Straight-line rental income, net of write-offs	(7,261)	(15,665)	(21,323)
Stock-based compensation	4,180	2,379	437
Changes in operating assets and liabilities:
Accounts payable and other liabilities	(170)	(4,521)	(3,795)
Other assets	909	3,777	(1,985)
Net cash provided by operating activities	121,675	136,942	112,838
Cash flows from investing activities:
Investments in real estate	(157,194)	(71,462)	(16,135)
Consideration paid for the internalization transaction	0	(15,000)	(25,000)
Proceeds from real estate disposition	22,822	1,308,009	28,542
Capital expenditures	(8,440)	(25,285)	(28,797)
Change in deposits and other costs for investments in real estate	0	(120)	(26)
Collection of notes receivable	0	30,700	0
Net cash (used in) provided by investing activities	(142,812)	1,226,842	(41,416)
Cash flows from financing activities:
Payments on notes payable	0	(453,422)	(3,923)
Proceeds from credit facility	845,000	15,000	140,000
Payments on credit facility	(762,000)	(453,000)	(110,000)
Payments for extinguishment of debt	(4)	(29,244)	0
Payments of deferred financing costs	(6,937)	(444)	(715)
Repurchase of common stock	(9,217)	(9,528)	(29,487)
Offering costs on issuance of common stock	(192)	(2,326)	(3,099)
Distributions to common stockholders	(65,310)	(465,849)	(76,517)
Purchase of noncontrolling interests	0	0	(2)
Net cash provided by (used in) financing activities	1,340	(1,398,813)	(83,743)
Net change in cash, cash equivalents and restricted cash	(19,797)	(35,029)	(12,321)
Cash, cash equivalents and restricted cash - Beginning of year	32,880	67,909	80,230
Cash, cash equivalents and restricted cash - End of year	13,083	32,880	67,909
Supplemental cash flow disclosure:
Interest paid, net of interest capitalized of $44, $395 and $669, respectively	17,361	38,558	55,129
Supplemental disclosure of non-cash transactions:
Common stock issued through distribution reinvestment plan	24,834	27,584	30,553
Change in accrued distributions to common stockholders	543	(1,368)	24
Change in accounts payable and other liabilities related to capital expenditures and investments in real estate	(3,705)	(243)	2,752
Right-of-use assets obtained in exchange for new lease liabilities	15,305	625	3,914
Origination of note receivable related to real estate disposition	0	0	28,000
Deferred internalization transaction purchase price	$ 0	$ 0	$ 14,674

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CONSOLIDATED STATEMENTS OF CASH FLOWS (PARENTHETICAL) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Statement of Cash Flows [Abstract]
Interest capitalized	$ 44	$ 395	$ 669

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Organization and Business Operations

12 Months Ended

Dec. 31, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization and Business Operations

Organization and Business Operations

Sila Realty Trust, Inc., or the Company, is a Maryland corporation, headquartered in Tampa, Florida, that has elected, and currently qualifies, to be taxed as a real estate investment trust, or a REIT, under the Internal Revenue Code of 1986, as amended, or the Code, for federal income tax purposes. The Company invests in high-quality properties leased to long-term tenants. The Company is primarily focused on investing in strategic healthcare assets across the continuum of care, with emphasis on lower cost patient settings, which, the Company believes, typically generate predictable, durable and growing income streams. The Company may also make other real estate-related investments, which may include equity or debt interests in other real estate entities.

Substantially all of the Company’s business is conducted through Sila Realty Operating Partnership, LP, a Delaware limited partnership, or the Operating Partnership. The Company is the sole general partner of the Operating Partnership and directly owns 100% of the Operating Partnership.

The Company formerly invested in data center properties and during the second quarter of 2021, the Company's board of directors, or the Board, made a determination to sell the Company's data center properties. On May 19, 2021, the Company and certain of its wholly-owned subsidiaries entered into a purchase and sale agreement, or the PSA, for the sale of 29 data center properties owned by the Company, which constituted the entirety of the Company's data center segment. The decision of the Board to sell the data center properties, as well as the execution of the PSA, represented a strategic shift that had a major effect on the Company's results and operations. On July 22, 2021, the Company completed the sale of its data center segment, or the Data Center Sale, for an aggregate sale price of $1,320,000,000, and generated net proceeds of approximately $1,295,367,000. Concurrently, the Board declared a special cash distribution of $1.75 per share of Class A, Class I, Class T and Class T2 shares of common stock. The special cash distribution was funded with the proceeds from the Data Center Sale. The special cash distribution was paid on July 30, 2021 to stockholders of record at the close of business on July 26, 2021, in an aggregate amount of approximately $392,685,000. As a result of the Data Center Sale, the Company had no assets or liabilities related to the data center segment as of December 31, 2021, and subsequent. The operations of the data center segment have been classified as income from discontinued operations on the consolidated statements of comprehensive income for the years ended December 31, 2021 and 2020.

Except as the context otherwise requires, the “Company” refers to Sila Realty Trust, Inc., the Operating Partnership and their wholly-owned subsidiaries.

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Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2022

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

The summary of significant accounting policies presented below is designed to assist in understanding the Company’s consolidated financial statements. Such consolidated financial statements and the accompanying notes thereto are the responsibility of management. These accounting policies conform to U.S. generally accepted accounting principles, or GAAP, in all material respects, and have been consistently applied in preparing the consolidated financial statements.

Principles of Consolidation and Basis of Presentation

The accompanying consolidated financial statements include the accounts of the Company, the Operating Partnership, and their wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation.

Use of Estimates

The preparation of the consolidated financial statements and accompanying notes in conformity with GAAP requires the Company to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. These estimates are made and evaluated on an ongoing basis using information that is currently available as well as various other assumptions believed to be reasonable under the circumstances. Actual results could differ from those estimates.

Restricted Cash

Restricted cash consists of cash held in escrow accounts for tenant and capital improvements in accordance with the respective tenants' lease agreements. Restricted cash is reported in other assets, in the accompanying consolidated balance sheets.

The following table presents a reconciliation of the beginning of year and end of year cash, cash equivalents and restricted cash reported within the consolidated balance sheets to the totals shown in the consolidated statements of cash flows (amounts in thousands):

	Year Ended December 31,
	2022		2021		2020
Beginning of year:
Cash and cash equivalents	$	32,359	$	53,174	$	69,342
Restricted cash	521		14,735		10,888
Cash, cash equivalents and restricted cash	$	32,880	$	67,909	$	80,230
End of year:
Cash and cash equivalents	$	12,917	$	32,359	$	53,174
Restricted cash	166		521		14,735
Cash, cash equivalents and restricted cash	$	13,083	$	32,880	$	67,909

Investment in Real Estate

Real estate costs related to the acquisition, development, construction and improvement of properties are capitalized. Repair and maintenance costs are expensed as incurred and significant replacements and improvements are capitalized. Repair and maintenance costs include all costs that do not extend the useful life of the real estate assets. The Company considers the period of future benefit of an asset in determining the appropriate useful life. Real estate assets, other than land, are depreciated on a straight-line basis over each asset’s useful life. The Company anticipates the estimated useful lives of its assets by class as follows:

Buildings and improvements	15 – 40 years
Tenant improvements	Shorter of lease term or expected useful life
Furniture, fixtures, and equipment	3 – 10 years

Allocation of Purchase Price of Real Estate

Upon the acquisition of real estate properties, the Company evaluates whether the acquisition is a business combination or an asset acquisition. For both business combinations and asset acquisitions, the Company allocates the purchase price of properties to acquired tangible assets, consisting of land, buildings and improvements, and acquired intangible assets and liabilities, consisting of the value of above-market and below-market leases and the value of in-place leases. For asset acquisitions, the Company capitalizes transaction costs and allocates the purchase price using a relative fair value method allocating all accumulated costs. For business combinations, the Company expenses transaction costs incurred and allocates the purchase price based on the estimated fair value of each separately identifiable asset and liability. For the year ended December 31, 2022, all of the Company's acquisitions were determined to be asset acquisitions.

The fair value of the tangible assets of an acquired property (which includes land, buildings and improvements) is determined by valuing the property as if it were vacant, and the “as-if-vacant” value is then allocated to land and buildings and improvements based on management’s determination of the relative fair value of these assets.

The amount allocated to in-place leases includes an estimate of direct costs associated with obtaining a new tenant and opportunity costs associated with lost rentals that are avoided by acquiring an in-place lease. These lease intangibles are amortized to depreciation and amortization expense over the remaining terms of the respective leases. If a lease were to be terminated prior to its stated expiration, all unamortized amounts of in-place lease assets relating to that lease would be expensed.

The amounts allocated to above-market and below-market leases are recorded based on the present value of the difference between: (i) the contractual amounts to be paid pursuant to the in-place leases and (ii) an estimate of current market lease rates for the corresponding leases, measured over a period equal to the remaining non-cancelable term of the lease including any fixed rate bargain renewal periods, with respect to a below-market lease. These above-market and below market amounts are amortized as an adjustment of rental revenue over the remaining terms of the respective leases. If a lease were to be terminated prior to its stated expiration, all unamortized amounts of above-market and below-market lease values related to that lease would be recorded as an adjustment to rental revenue.

Held for Sale

The Company classifies a real estate property as held for sale upon satisfaction of all of the following criteria: (i) management commits to a plan to sell the property; (ii) the property is available for immediate sale in its present condition, subject only to terms that are usual and customary for sales of such properties; (iii) there is an active program to locate a buyer; (iv) the sale of the property is probable and transfer of the asset is expected to be completed within one year; (v) the property is being actively marketed for sale; and (vi) actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn.

Upon the determination to classify a property as held for sale, the Company ceases depreciation and amortization on the real estate property held for sale, as well as the amortization of any related intangible assets. Such properties are recorded at the lesser of the carrying value or estimated fair value less estimated costs to sell.

Impairments

The Company continually monitors events and changes in circumstances that could indicate that the carrying amounts of its real estate assets may not be recoverable. When indicators of potential impairment suggest that the carrying value of real estate assets may not be recoverable, the Company assesses the recoverability of the asset group by estimating whether the Company will recover the carrying value of the asset group through its undiscounted future cash flows, including eventual disposition. Based on this analysis, if the Company does not believe that it will be able to recover the carrying value of the asset group, an impairment charge will be recorded to the extent that the carrying value exceeds the estimated fair value of the asset group.

When developing estimates of expected future cash flows, the Company makes certain assumptions regarding future market rental rates subsequent to the expiration of current lease arrangements, property operating expenses, terminal capitalization and discount rates, probability weighting of potential uses of the property, sale prices of comparable properties, required tenant improvements and the number of years the property will be held for investment. The use of alternative assumptions in the future cash flow analysis could result in a different determination of the property’s future cash flows and a different conclusion regarding the existence of an impairment, the extent of such loss, if any, as well as the carrying value of the real estate assets.

In addition, we determine fair value by using a direct capitalization method, a discounted cash flow method using the assumptions noted above, or by utilizing comparable market information based on the view of a market participant. The use of alternative assumptions in these approaches could result in a different determination of the property’s estimated fair value and a different conclusion regarding the existence of an impairment, the extent of such loss, if any, as well as the carrying value of the real estate assets.

The Company accounts for goodwill in accordance with Accounting Standards Codification, or ASC, 350, Intangibles - Goodwill and Other, and allocates its goodwill to its reporting units, which have been determined to be at the individual property level. Goodwill has an indefinite life and is not amortized.

The Company evaluates goodwill for impairment at least annually, as of the last day of each year, or upon the occurrence of a triggering event. A triggering event is an event or circumstance that would more-likely-than-not indicate that the fair value of a reporting unit is below its carrying value.

The Company has the option to perform a qualitative assessment to determine if a quantitative impairment test is necessary. Under a qualitative assessment, the impairment analysis for goodwill represents an evaluation of whether it is more-likely-than-not the reporting unit's fair value is less than its carrying value, including goodwill. If a qualitative analysis indicates that it is more-likely-than-not that the estimated carrying value of a reporting unit, including goodwill, exceeds its fair value, the Company performs the quantitative analysis. The quantitative analysis consists of estimating the fair value of each reporting unit using discounted projected future cash flows and comparing those estimated fair values with the carrying values, which include the allocated goodwill. If the estimated fair value is less than the carrying value, the Company would then recognize a goodwill impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value, not to exceed the total amount of goodwill allocated to that reporting unit.

Deferred Financing Costs

Deferred financing costs are loan fees, legal fees and other third-party costs associated with obtaining and further modifying financing. These costs are amortized over the terms of the respective financing agreements using the effective interest method. Deferred financing costs related to the term loan portion of the credit facility are recorded as a reduction of the related debt on the accompanying consolidated balance sheets. Deferred financing costs related to the revolving line of credit are recorded in other assets, net, in the accompanying consolidated balance sheets.

Fair Value

ASC 820, Fair Value Measurements and Disclosures, or ASC 820, defines fair value, establishes a framework for measuring fair value in accordance with GAAP and expands disclosures about fair value measurements. ASC 820 emphasizes that fair value is intended to be a market-based measurement, as opposed to a transaction-specific measurement.

Fair value is defined by ASC 820 as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Depending on the nature of the asset or liability, various techniques and assumptions can be used to estimate the fair value. Assets and liabilities are measured using inputs from three levels of the fair value hierarchy, as follows:

Level 1—Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. An active market is defined as a market in which transactions for the assets or liabilities occur with sufficient frequency and volume to provide pricing information on an ongoing basis.

Level 2—Inputs other than quoted prices for similar assets and liabilities in active markets that are observable for the asset or liability (i.e., interest rates, yield curves, etc.), and inputs that are derived principally from or corroborated by observable market data correlation or other means (market corroborated inputs).

Level 3—Unobservable inputs, only used to the extent that observable inputs are not available, reflect the Company’s assumptions about the pricing of an asset or liability.

Revenue Recognition and Tenant Receivables

The majority of the Company's revenue is derived from rental revenue, which is accounted for in accordance with ASC 842, Leases, or ASC 842. Under ASC 842, rental revenue is recognized on a straight-line basis over the term of the related lease (including rent holidays). For lease arrangements where it is not probable that the Company will collect all or substantially all of the remaining lease payments under the term of the lease, rental revenue is limited to the lesser of the rental revenue that would be recognized on a straight-line basis or the lease payments that have been collected from the lessee. Differences between rental revenue recognized and amounts contractually due under the lease agreements are credited or charged to straight-line rent receivable. Tenant reimbursements, which are comprised of additional amounts recoverable from tenants for common area maintenance expenses and certain other recoverable expenses, are recognized when the services are provided and the performance obligations are satisfied.

Share Repurchase Program

The Company’s Amended and Restated Share Repurchase Program, or the SRP, allows for repurchases of shares of the Company’s common stock upon meeting certain criteria. The SRP provides that all repurchases during any calendar year, including those redeemable upon death or a "Qualifying Disability" (as defined in the Company's SRP) of a stockholder, be limited to those that can be funded with equivalent proceeds raised from the DRIP during the prior calendar year and other operating funds, if any, as the Board, in its sole discretion, may reserve for this purpose.

Repurchases of shares of the Company’s common stock are at the sole discretion of the Board, provided, however, that the Company limits the number of shares repurchased during any calendar year to 5.0% of the total number of shares of common stock outstanding as of December 31st of the previous calendar year. The SRP is subject to terms and limitations, including, but not limited to, quarterly share limitations, an annual 5.0% share limitation and DRIP funding limitations and any amendments to the plan. In addition, the Board, in its sole discretion, may suspend (in whole or in part) the SRP at any time, and may amend, reduce, terminate or otherwise change the SRP upon 30 days' prior notice to the Company’s stockholders for any reason it deems appropriate.

The Company will currently only repurchase shares due to death and involuntary exigent circumstances in accordance with the SRP, subject in each case to the terms and limitations of the SRP. Under the SRP, the Company may waive certain of the terms and requirements of the SRP in the event of the death of a stockholder who is a natural person, including shares held through an Individual Retirement Account or other retirement or profit-sharing plan, and certain trusts meeting the requirements of the SRP. The Company may also waive certain of the terms and requirements of the SRP in the event of an involuntary exigent circumstance, as determined by the Company or any of the executive officers thereof, in its or their sole discretion.

Distribution Policy

In order to maintain its status as a REIT, the Company is required to make distributions each taxable year equal to at least 90% of its REIT taxable income, computed without regard to the dividends paid deduction and excluding capital gains. To the extent funds are available, the Company intends to continue to pay regular distributions to stockholders. Distributions are paid to stockholders of record as of the applicable record dates. Distributions to stockholders are determined by the Board and are dependent upon a number of factors, including funds available for the payment of distributions, financial condition, the timing

of property acquisitions, capital expenditure requirements, and annual distribution requirements in order to maintain the Company’s status as a REIT.

Stock-based Compensation

On March 6, 2020, the Board approved the Amended and Restated 2014 Restricted Share Plan, or the A&R Incentive Plan, pursuant to which the Company has the authority and power to grant awards of restricted shares of its Class A common stock to its directors, officers and employees. The Company accounts for its stock awards in accordance with ASC 718-10, Compensation—Stock Compensation. ASC 718-10 requires that compensation cost for all stock awards be calculated and amortized over the service period (generally equal to the vesting period). For performance-based awards, compensation costs are recognized over the service period if it is probable that the performance condition will be satisfied, with changes of the assessment at each reporting period and recording the effect of the change in the compensation cost as a cumulative catch-up adjustment. The compensation costs for restricted stock are recognized based on the fair value of the restricted stock awards at grant date. Forfeitures are accounted for as they occur.

Earnings Per Share

The Company calculates basic earnings per share by dividing net (loss) income attributable to common stockholders for the period by the weighted average shares of its common stock outstanding for that period. Diluted earnings per share is computed based on the weighted average number of shares outstanding and all potentially dilutive securities. Shares of non-vested restricted common stock and Performance DSUs give rise to potentially dilutive shares of common stock.

Reportable Segments

ASC 280, Segment Reporting, establishes standards for reporting financial and descriptive information about an entity’s reportable segments. As of December 31, 2022 and December 31, 2021, 100% of the Company's consolidated revenues from continuing operations were generated from real estate investments in healthcare properties. The Company’s chief operating decision maker evaluates operating performance of healthcare properties on an individual property level, which are aggregated into one reportable segment due to their similar economic characteristics.

Derivative Instruments and Hedging Activities

As required by ASC 815, Derivatives and Hedging, or ASC 815, the Company records all derivative instruments at fair value as assets and liabilities on its consolidated balance sheets. The accounting for changes in the fair value of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship and further, on the type of hedging relationship. For those derivative instruments that are designated and qualify as hedging instruments, a company must designate the hedging instrument, based upon the exposure being hedged, as a fair value hedge, cash flow hedge or a hedge of a net investment in a foreign operation.

In accordance with the fair value measurement guidance in Accounting Standards Update, or ASU, 2011-04, Fair Value Measurement, the Company made an accounting policy election to measure the credit risk of its derivative financial instruments that are subject to master netting agreements on a net basis by counterparty portfolio.

The Company is exposed to variability in expected future cash flows that are attributable to interest rate changes in the normal course of business. The Company’s primary strategy in entering into derivative contracts is to add stability to future cash flows by managing its exposure to interest rate fluctuations. The Company utilizes derivative instruments, including interest rate swaps, to effectively convert some of its variable rate debt to fixed rate debt. The Company does not enter into derivative instruments for speculative purposes.

In accordance with ASC 815, the Company designates interest rate swap contracts as cash flow hedges of floating-rate borrowings. For derivative instruments that are designated and qualify as cash flow hedges, the gains or losses on the derivative instruments are reported as other comprehensive income (loss) - unrealized gain (loss) on interest rate swaps, net in the consolidated statements of comprehensive income and are reclassified into earnings in the same line item associated with the forecasted transaction in the same period during which the hedged transactions affect earnings.

Income Taxes

The Company currently qualifies and is taxed as a REIT under Sections 856 through 860 of the Code. Accordingly, it will generally not be subject to corporate U.S. federal or state income tax to the extent that it makes qualifying distributions to stockholders, and provided it satisfies, on a continuing basis, through actual investment and operating results, the REIT requirements, including certain asset, income, distribution and stock ownership tests. If the Company fails to qualify as a REIT, it would be subject to U.S. federal, state and local income taxes and may be precluded from qualifying as a REIT for the subsequent four taxable years following the year in which it lost its REIT qualification, unless the Internal Revenue Service grants the Company relief under certain statutory provisions. Accordingly, failure to qualify as a REIT could have a material adverse impact on the results of operations and amounts available for distribution to stockholders.

The dividends paid deduction of a REIT for qualifying dividends paid to its stockholders is computed using the Company’s taxable income as opposed to net income reported in the consolidated financial statements. Taxable income, generally, will differ from net income reported in the consolidated financial statements because the determination of taxable income is based on tax provisions and not financial accounting principles.

The Company has concluded that there was no impact related to uncertain tax positions from results of operations of the Company for the years ended December 31, 2022, 2021 and 2020. The earliest tax year currently subject to examination is 2019.

Reclassifications

During the current year, the Company has determined that certain expenses, previously presented within general and administrative expenses, are more closely related to the operations of its properties. As a result, these amounts have been reclassified to rental expenses for all prior periods to conform to the current period presentation.

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Real Estate Investments

12 Months Ended

Dec. 31, 2022

Real Estate [Abstract]

Real Estate Investments

Real Estate Investments

2022 Real Estate Property Acquisitions

During the year ended December 31, 2022, the Company purchased seven real estate properties in five separate transactions, or the 2022 Acquisitions, which were each determined to be asset acquisitions. The Company allocated the purchase price of the 2022 Acquisitions to tangible assets, consisting of land, building and improvements, tenant improvements, and acquired intangible assets and liabilities, consisting of in-place and above and below market leases, based on the relative fair value method of allocating all accumulated costs.

The following table summarizes the consideration transferred for the 2022 Acquisitions during the year ended December 31, 2022:

Property Description	Date Acquired	Ownership Percentage	Consideration Transferred (amount in thousands)
Yukon Healthcare Facility	03/10/2022	100%	$	19,554
Pleasant Hills Healthcare Facility	05/12/2022	100%	14,303
Prosser Healthcare Facilities (1)	05/20/2022	100%	8,593
Tampa Healthcare Facility II	07/20/2022	100%	51,259
Escondido Healthcare Facility	07/21/2022	100%	63,485
Total			$	157,194

(1)     The Prosser Healthcare Facilities consist of three healthcare properties.

The following table summarizes the Company's purchase price allocation of the 2022 Acquisitions during the year ended December 31, 2022 (amounts in thousands):

	Total
Land	$	2,646
Building and improvements	136,938
Tenant improvements	4,840
In-place leases	12,779
Above-market leases	454
Total assets acquired	157,657
Below-market leases	(463)
Net assets acquired	$	157,194

Acquisition costs associated with transactions determined to be asset acquisitions are capitalized. The Company capitalized acquisition costs of approximately $617,000 related to the 2022 Acquisitions, which are included in the Company's allocation of the real estate acquisitions presented above.

2022 Real Estate Property Disposition

On February 10, 2022, the Company sold one land parcel that formerly contained a healthcare property, or the 2022 Disposition, for a sale price of $24,000,000 and generated net proceeds of $22,701,000. For the year ended December 31, 2022, the Company recognized a gain on sale of $460,000, which is presented in gain on real estate disposition in the consolidated statements of comprehensive income.

Investment Risk Concentrations

As of December 31, 2022, the Company had one exposure to geographic concentration that accounted for greater than 10.0% of rental revenue for the year ended December 31, 2022. Real estate investments located in the Houston-The Woodlands-Sugar Land, Texas metropolitan statistical area accounted for 11.0% of rental revenue for the year ended December 31, 2022.

As of December 31, 2022, the Company had one exposure to tenant concentration that accounted for greater than 10.0% of rental revenue for the year ended December 31, 2022. The leases with tenants at properties under the common control of Post Acute Medical, LLC and its affiliates accounted for 15.2% of rental revenue for the year ended December 31, 2022.

Impairments of Real Estate, Goodwill, Acquired Intangible Assets and Acquired Intangible Liabilities

During the year ended December 31, 2022, the Company determined that triggering events occurred at several of its properties as a result of changes in market conditions and its tenants experiencing financial difficulties. As a result, the Company recorded impairment losses on real estate, including goodwill, in the aggregate amount of $47,424,000 related to its healthcare properties. In addition, during the year ended December 31, 2022, the Company recorded an impairment of in-place lease intangible assets in the amount of approximately $4,345,000. The fair values of these properties were determined based on the guidance in ASC 820, Fair Value Measurement. These impairments were allocated to the asset groups, for each respective property, on a pro-rata basis, which included land, buildings and improvements, and their related acquired intangible assets.

During the year ended December 31, 2021, the Company recorded impairment losses on real estate, including goodwill, in the aggregate amount of $27,837,000 related to one healthcare property held for use, one healthcare property classified as held for sale and one land parcel that formerly contained a healthcare property classified as held for sale. The fair value of the properties with impairment charges during the year ended December 31, 2021, were determined based on the guidance in ASC 820, Fair Value Measurement. These impairments were allocated to the asset groups, for each respective property, on a pro-rata basis, which included land, buildings and improvements, and their related acquired intangible assets. The impaired properties for the year ended December 31, 2021 have all been subsequently sold.

No impairment losses were recorded on real estate or goodwill during the year ended December 31, 2020. During the year ended December 31, 2020, the Company recognized impairments of in-place lease intangible assets in the amount of $1,504,000 and above-market lease intangible assets in the amount of approximately $344,000.

Impairments on real estate and goodwill are recorded as impairment losses in the accompanying consolidated statements of comprehensive income. Impairments of the in-place leases are included in depreciation and amortization in the accompanying consolidated statements of comprehensive income. Impairments of the above-market leases are recorded as an adjustment to rental revenue in the accompanying consolidated statements of comprehensive income.

In addition, during the year ended December 31, 2020, the Company recognized impairments of lease intangibles of $1,215,000 related to a data center tenant, which is included in income from discontinued operations in the accompanying consolidated statements of comprehensive income.

The following table summarizes the rollforward of goodwill for the years ended December 31, 2022 and 2021 (amounts in thousands):

	Year Ended December 31,
	2022		2021
Balance at beginning of year	$	23,284	$	23,955
Impairment losses	(1,574)		(671)
Balance at end of year	$	21,710	$	23,284

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Held for Sale and Discontinued Operations

12 Months Ended

Dec. 31, 2022

Discontinued Operations and Disposal Groups [Abstract]

Held for Sale and Discontinued Operations

Held for Sale and Discontinued OperationsOn August 30, 2021, the Company entered into a purchase and sale agreement for the sale of one land parcel that formerly contained a healthcare property. The purchase and sale agreement required that the structures on the healthcare property be demolished prior to the sale. The structures on the property were demolished and the property consisted solely of land as of

December 31, 2021. The Company classified the land as held for sale as of December 31, 2021. The Company sold the land held for sale on February 10, 2022.

The following table presents the major classes of the assets and liabilities held for sale as presented separately in the condensed consolidated balance sheet as of December 31, 2021 (amounts in thousands):

	December 31, 2021
Assets:
Real estate:
Land	$	22,241
Total real estate, net	22,241
Other assets, net	329
Assets held for sale	$	22,570
Liabilities:
Accounts payable and other liabilities	698
Liabilities held for sale	$	698

The operations reflected in income from discontinued operations (which consisted solely of the Company's former data center segment) on the consolidated statements of comprehensive income for the years ended December 31, 2021 and 2020, were as follows (amounts in thousands):

	Year Ended December 31,
	2021		2020
Revenue:
Rental revenue	$	57,903	$	110,755
Lease termination revenue	7,075		—
Total revenue	64,978		110,755
Expenses:
Rental expenses	15,737		28,346
Asset management fees	—		5,310
Depreciation and amortization	11,759		35,634
Total expenses	27,496		69,290
Interest and other expense, net (1)	31,839		13,626
Income from discontinued operations	5,643		27,839
Gain on real estate dispositions	395,801		—
Net income from discontinued operations attributable to common stockholders	$	401,444	$	27,839

(1)    Interest expense attributable to discontinued operations for the years ended December 31, 2021 and December 31, 2020 was $31,856,000 and $13,741,000, respectively, which related to notes payable on certain data center properties. On July 22, 2021, in connection with the Data Center Sale, the Company paid off all data center and healthcare related notes payable, with an outstanding principal balance of $450,806,000 at the time of repayment and incurred approximately $23,738,000 of debt extinguishment costs related to the data center properties.

Capital expenditures on a cash basis for the years ended December 31, 2021, and 2020 were $2,763,000 and $3,945,000, respectively, related to properties classified within discontinued operations.

There were no significant non-cash operating or investing activities for the properties classified within discontinued operations for the year ended December 31, 2021. Significant non-cash operating activities for properties classified within discontinued operations were $764,000 for the year ended December 31, 2020, which related to accrued utilities. There were no significant non-cash investing activities for the properties classified within discontinued operations for the year ended December 31, 2020.

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Acquired Intangible Assets, Net

12 Months Ended

Dec. 31, 2022

Finite-Lived Intangible Assets, Net [Abstract]

Acquired Intangible Assets, Net

Acquired Intangible Assets, Net

Acquired intangible assets, net, consisted of the following as of December 31, 2022 and 2021 (amounts in thousands, except weighted average remaining life amounts):

	December 31, 2022		December 31, 2021
In-place leases, net of accumulated amortization of $83,788 and $66,579, respectively (with a weighted average remaining life of 8.9 years and 9.5 years, respectively)	$	155,365	$	168,012
Above-market leases, net of accumulated amortization of $6,451 and $4,488, respectively (with a weighted average remaining life of 7.9 years and 8.8 years, respectively)	12,118		13,627
	$	167,483	$	181,639

The aggregate weighted average remaining life of the acquired intangible assets was 8.8 years and 9.5 years as of December 31, 2022 and 2021, respectively.

Amortization of acquired intangible assets was $27,389,000, $23,157,000 and $23,876,000 for the years ended December 31, 2022, 2021 and 2020, respectively. Amortization of in-place leases is included in depreciation and amortization, and amortization of above-market leases is recorded as an adjustment to rental revenue in the accompanying consolidated statements of comprehensive income.

Estimated amortization expense on the acquired intangible assets as of December 31, 2022, for each of the next five years ending December 31 and thereafter, is as follows (amounts in thousands):

Year	Amount
2023	$	22,221
2024	21,195
2025	19,204
2026	17,503
2027	15,926
Thereafter	71,434
	$	167,483

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Acquired Intangible Liabilities, Net

12 Months Ended

Dec. 31, 2022

Intangible Lease Liabilities, Net [Abstract]

Acquired Intangible Liabilities, Net

Acquired Intangible Liabilities, Net

Acquired intangible liabilities, net, consisted of the following as of December 31, 2022 and 2021 (amounts in thousands, except weighted average remaining life amounts):

	December 31, 2022		December 31, 2021
Below-market leases, net of accumulated amortization of $5,923 and $4,444, respectively (with a weighted average remaining life of 8.4 years and 9.3 years, respectively)	$	11,946	$	12,962

Amortization of below-market leases was $1,479,000, $1,322,000 and $1,207,000 for the years ended December 31, 2022, 2021 and 2020, respectively. Amortization of below-market leases is recorded as an adjustment to rental revenue in the accompanying consolidated statements of comprehensive income.

Estimated amortization of the acquired intangible liabilities as of December 31, 2022, for each of the next five years ending December 31 and thereafter, are as follows (amounts in thousands):

Year	Amount
2023	$	1,494
2024	1,494
2025	1,494
2026	1,475
2027	1,450
Thereafter	4,539
	$	11,946

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Leases

12 Months Ended

Dec. 31, 2022

Leases [Abstract]

Leases

Leases

Lessor

Rental Revenue

The Company’s real estate properties are leased to tenants under operating leases with varying terms. Typically, the leases have provisions to extend the terms of the lease agreements. The Company retains substantially all of the risks and benefits of ownership of the real estate properties leased to tenants.

Future rent to be received from the Company's investments in real estate assets under the terms of non-cancellable operating leases in effect as of December 31, 2022, for each of the next five years ending December 31 and thereafter, are as follows (amounts in thousands):

Year	Amount
2023	$	172,907
2024	174,299
2025	170,346
2026	163,441
2027	159,797
Thereafter	938,204
Total	$	1,778,994

Lessee

The Company is subject to various non-cancellable operating ground lease agreements on which certain of its properties reside. In addition, the Company has non-cancellable corporate-related operating leases.

The Company's operating leases do not provide implicit interest rates. In order to calculate the present value of the remaining operating payments, the Company used incremental borrowing rates, or IBRs, adjusted for a number of factors. The determination of an appropriate IBR involves multiple inputs and judgments. The Company determined its IBRs considering the general economic environment, term of the underlying leases, and various financing and asset specific adjustments to ensure the IBRs are appropriate for the intended use of the underlying operating leases.

The Company's right-of-use assets classified as operating leases are recorded in right-of-use assets on the consolidated balance sheets.

The future rent payments, discounted by the Company's IBRs, under non-cancellable leases in effect as of December 31, 2022, for each of the next five years ending December 31 and thereafter, are as follows (amounts in thousands):

Year	Operating
2023	$	2,675
2024	2,746
2025	2,768
2026	2,715
2027	2,681
Thereafter	107,456
Total undiscounted rental payments	121,041
Less imputed interest	(79,487)
Total lease liabilities	$	41,554
Weighted average IBR	5.5		%
Weighted average remaining lease term	37.5 years

The following table provides details of the Company's total lease costs for the years ended December 31, 2022, 2021 and 2020 (amounts in thousands):

		Year Ended December 31,
	Location in Consolidated Statements of Comprehensive Income	2022		2021		2020
Operating lease costs:
Ground lease costs (1)	Rental expenses	$	2,246	$	1,846	$	1,741
Ground lease costs (2)	Income from discontinued operations	—		414		880
Corporate operating lease costs	General and administrative expenses	741		1,129		264
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases		$	531	$	1,067	$	270

(1)The Company receives reimbursements from tenants for certain operating ground leases, which are recorded as rental revenue in the accompanying consolidated statements of comprehensive income.

(2)Amount relates to lease costs attributable to operating ground leases related to data center properties disposed of in the Data Center Sale on July 22, 2021.

Leases

Leases

Lessor

Rental Revenue

The Company’s real estate properties are leased to tenants under operating leases with varying terms. Typically, the leases have provisions to extend the terms of the lease agreements. The Company retains substantially all of the risks and benefits of ownership of the real estate properties leased to tenants.

Future rent to be received from the Company's investments in real estate assets under the terms of non-cancellable operating leases in effect as of December 31, 2022, for each of the next five years ending December 31 and thereafter, are as follows (amounts in thousands):

Year	Amount
2023	$	172,907
2024	174,299
2025	170,346
2026	163,441
2027	159,797
Thereafter	938,204
Total	$	1,778,994

Lessee

The Company is subject to various non-cancellable operating ground lease agreements on which certain of its properties reside. In addition, the Company has non-cancellable corporate-related operating leases.

The Company's operating leases do not provide implicit interest rates. In order to calculate the present value of the remaining operating payments, the Company used incremental borrowing rates, or IBRs, adjusted for a number of factors. The determination of an appropriate IBR involves multiple inputs and judgments. The Company determined its IBRs considering the general economic environment, term of the underlying leases, and various financing and asset specific adjustments to ensure the IBRs are appropriate for the intended use of the underlying operating leases.

The Company's right-of-use assets classified as operating leases are recorded in right-of-use assets on the consolidated balance sheets.

The future rent payments, discounted by the Company's IBRs, under non-cancellable leases in effect as of December 31, 2022, for each of the next five years ending December 31 and thereafter, are as follows (amounts in thousands):

Year	Operating
2023	$	2,675
2024	2,746
2025	2,768
2026	2,715
2027	2,681
Thereafter	107,456
Total undiscounted rental payments	121,041
Less imputed interest	(79,487)
Total lease liabilities	$	41,554
Weighted average IBR	5.5		%
Weighted average remaining lease term	37.5 years

The following table provides details of the Company's total lease costs for the years ended December 31, 2022, 2021 and 2020 (amounts in thousands):

		Year Ended December 31,
	Location in Consolidated Statements of Comprehensive Income	2022		2021		2020
Operating lease costs:
Ground lease costs (1)	Rental expenses	$	2,246	$	1,846	$	1,741
Ground lease costs (2)	Income from discontinued operations	—		414		880
Corporate operating lease costs	General and administrative expenses	741		1,129		264
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases		$	531	$	1,067	$	270

(1)The Company receives reimbursements from tenants for certain operating ground leases, which are recorded as rental revenue in the accompanying consolidated statements of comprehensive income.

(2)Amount relates to lease costs attributable to operating ground leases related to data center properties disposed of in the Data Center Sale on July 22, 2021.

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Other Assets

12 Months Ended

Dec. 31, 2022

Other Assets [Abstract]

Other Assets

Other Assets

Other assets consisted of the following as of December 31, 2022 and 2021 (amounts in thousands):

	December 31, 2022		December 31, 2021
Deferred financing costs, related to the revolver portion of the credit facility, net of accumulated amortization of $889 and $8,332, respectively	$	3,178	$	482
Leasing commissions, net of accumulated amortization of $167 and $121, respectively	775		780
Restricted cash	166		521
Tenant receivables	1,736		1,851
Straight-line rent receivable	62,457		55,725
Prepaid and other assets	3,865		4,835
Derivative assets	27,990		2,171
	$	100,167	$	66,365

Amortization of deferred financing costs related to the revolver portion of the credit facility for the years ended December 31, 2022, 2021, and 2020 was $1,087,000, $1,430,000 and $1,206,000, respectively, which was recorded as interest and other expense, net, in the accompanying consolidated statements of comprehensive income.

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Accounts Payable and Other Liabilities

12 Months Ended

Dec. 31, 2022

Payables and Accruals [Abstract]

Accounts Payable and Other Liabilities

Accounts Payable and Other Liabilities

Accounts payable and other liabilities consisted of the following as of December 31, 2022 and 2021 (amounts in thousands):

	December 31, 2022		December 31, 2021
Accounts payable and accrued expenses	$	5,387	$	9,409
Accrued interest expense	1,941		1,626
Accrued property taxes	2,421		2,913
Accrued personnel costs	3,940		4,198
Distribution and servicing fees	—		182
Distributions payable to stockholders	7,719		7,355
Performance DSUs distributions payable	573		394
Tenant deposits	877		802
Deferred rental income	7,761		7,100
Derivative liabilities	—		5,618
	$	30,619	$	39,597

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Credit Facility

12 Months Ended

Dec. 31, 2022

Debt Disclosure [Abstract]

Credit Facility

Credit Facility

The Company's outstanding credit facility as of December 31, 2022 and 2021 consisted of the following (amounts in thousands):

	Weighted Average Contractual Rate	December 31, 2022		December 31, 2021
Variable rate revolving line of credit	5.47%	$	8,000	$	—
Variable rate term loans fixed through interest rate swaps	2.95%	485,000		400,000
Variable rate term loans	5.47%	90,000		100,000
Total credit facility, principal amount outstanding	3.37%	583,000		500,000
Unamortized deferred financing costs related to the term loan credit facility		(2,412)		(3,226)
Total credit facility, net of deferred financing costs		$	580,588	$	496,774

Significant activities regarding the credit facility during the year ended December 31, 2022, include:

•On February 15, 2022, the Company, the Operating Partnership and certain of the Company's subsidiaries, entered into a senior unsecured revolving credit agreement, or the Revolving Credit Agreement, with Truist Bank, as Administrative Agent for the lenders, for aggregate commitments available of up to $500,000,000, which may be increased, subject to lender approval, through incremental term loans and/or revolving loan commitments in an aggregate amount not to exceed $1,000,000,000. The maturity date for the Revolving Credit Agreement is February 15, 2026, which, at the Company's election, may be extended for a period of six-months on no more than two occasions, subject to certain conditions, including a payment of an extension fee. The Revolving Credit Agreement was entered into to replace the Company's prior $500,000,000 revolving line of credit, which had a maturity date of April 27, 2022, with the option to extend for one twelve-month period. The Company did not exercise the option to extend. Upon closing of the Revolving Credit Agreement, the Company extinguished all commitments associated with the prior revolving line of credit. Simultaneously with the Revolving Credit Agreement’s execution, on February 15, 2022, the Company, the Operating Partnership, and certain of the Company's subsidiaries, entered into a senior unsecured term loan agreement, or the 2024 Term Loan Agreement, with Truist Bank, as Administrative Agent for the lenders. The 2024 Term Loan Agreement was fully funded at closing, and is made up of aggregate commitments of $300,000,000, which may be increased, subject to lender approval, to an aggregate amount not to exceed $600,000,000. The 2024 Term Loan Agreement has a maturity date of December 31, 2024, and, at the Company's election, may be extended for a period of six-months on no more than two occasions, subject to the satisfaction of certain conditions, including a payment of an extension fee. The 2024 Term Loan Agreement was entered into to replace the Company's prior term loan, which was paid off in its entirety upon closing of the Revolving Credit Agreement and the 2024 Term Loan Agreement.

•In connection with the repayment of our prior credit facility, the Company recognized a loss on extinguishment of debt of $3,367,000 during the year ended December 31, 2022, which included loan costs in the amount of $4,000 and accelerated

unamortized debt issuance costs of $3,363,000. The loss on extinguishment of debt was recognized in interest and other expense, net, in the accompanying condensed consolidated statements of comprehensive income.

•On April 8, 2022, the Company entered into five interest rate swap agreements, two of which have an effective date of May 2, 2022 and an aggregate notional amount of $85,000,000, and three of which have an effective date of May 1, 2023 and an aggregate notional amount of $150,000,000.

•On May 17, 2022, the Company, the Operating Partnership and certain of the Company’s subsidiaries, entered into a new senior unsecured term loan agreement, or the 2028 Term Loan Agreement, with Truist Bank, as Administrative Agent for the lenders, for aggregate commitments of up to $275,000,000, of which $205,000,000 was drawn at closing to pay down the Company’s Revolving Credit Agreement in its entirety. The remainder of the commitments were available for three months following the closing date, or the Availability Period, and were available in no more than three subsequent draws with a minimum of $20,000,000 per draw, or the remaining commitments available. After the Availability Period, the undrawn portion was no longer available. If the committed amount was not fully drawn within 60 days of closing, the Company was required to pay a fee to the lenders, calculated as 0.25% per annum on the average daily amount of the undrawn portion, payable quarterly in arrears, until the earlier of (i) the date when the commitments have been funded in full, or (ii) August 17, 2022. The 2028 Term Loan Agreement may be increased, subject to lender approval, to an aggregate amount not to exceed $500,000,000 and has a maturity date of January 31, 2028. The 2028 Term Loan Agreement is pari passu with the Company’s Revolving Credit Agreement and 2024 Term Loan Agreement. The Company refers to the 2028 Term Loan Agreement, the Revolving Credit Agreement and the 2024 Term Loan Agreement, collectively, as the “Unsecured Credit Facility,” which has aggregate commitments available of $1,075,000,000.

•On July 12, 2022 and July 20, 2022, the Company drew $50,000,000 and $20,000,000, respectively, on the 2028 Term Loan Agreement, to fund acquisitions. As of July 20, 2022, the 2028 Term Loan Agreement commitments were fully funded.

•During the year ended December 31, 2022, the Company drew $70,000,000 on the Revolving Credit Agreement to fund acquisitions and repaid $57,000,000 on the Revolving Credit Agreement, with proceeds from dispositions and cash flows from operations.

The principal payments due on the Unsecured Credit Facility as of December 31, 2022, for each of the next five years ending December 31 and thereafter, are as follows (amounts in thousands):

Year	Amount
2023	$	—
2024	300,000
2025	—
2026	8,000
2027	—
Thereafter	275,000
	$	583,000

The proceeds of the loans made under the Unsecured Credit Facility may be used to finance the purchase of properties, for tenant improvements and leasing commissions with respect to real estate, for repayment of indebtedness, for capital expenditures with respect to real estate, and for general corporate and working capital purposes. The Company may prepay the loans at any time, subject to certain notice requirements.

At the Company’s election, loans under the Unsecured Credit Facility may be made as Base Rate Loans or Secured Overnight Financing Rate, or SOFR, Loans. The applicable margin for loans that are Base Rate Loans is adjustable based on a total leverage ratio, ranging from 0.25% to 0.90%. The applicable margin for loans that are SOFR Loans is adjustable based on a total leverage ratio, ranging from 1.25% to 1.90%.

In addition to interest, the Company is required to pay a fee on the unused portion of the lenders’ commitments under the Revolving Credit Agreement at a rate per annum equal to 0.20% if the average daily amount outstanding under the Revolving Credit Agreement is less than 50% of the aggregate commitments, or 0.15% if the average daily amount outstanding under the Revolving Credit Agreement is equal to or greater than 50% of the aggregate commitments. The unused fee is payable quarterly in arrears.

The Unsecured Credit Facility contains customary financial and operating covenants, including covenants relating to a maximum consolidated leverage ratio, maximum secured leverage ratio, fixed charge coverage ratio, minimum consolidated

tangible net worth, maximum distribution/payout ratio, covenants restricting the issuance of debt, imposition of liens, and entering into affiliate transactions.

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Fair Value

12 Months Ended

Dec. 31, 2022

Fair Value Disclosures [Abstract]

Fair Value

Fair Value

Cash and cash equivalents, restricted cash, tenant receivables, prepaid and other assets, accounts payable and accrued liabilities—The Company considers the carrying values of these financial instruments, assets and liabilities, to approximate fair value because of the short period of time between origination of the instruments and their expected realization.

Credit facility—The outstanding principal of the credit facility was $583,000,000 and $500,000,000, which approximated its fair value due to the variable nature of the terms as of December 31, 2022 and 2021, respectively.

The fair value of the Company's credit facility is estimated based on the interest rates currently offered to the Company by its financial institutions.

Derivative instruments—The Company’s derivative instruments consist of interest rate swaps. These swaps are carried at fair value to comply with the provisions of ASC 820. The fair value of these instruments is determined using interest rate market pricing models. The Company incorporated credit valuation adjustments to appropriately reflect the Company’s nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. The Company determined that the majority of the inputs used to value its interest rate swaps fall within Level 2 of the fair value hierarchy. The credit valuation adjustments associated with these instruments utilize Level 3 inputs, such as estimates of current credit spreads, to evaluate the likelihood of default by the Company and the respective counterparty. However, as of December 31, 2022, the Company assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and determined that the credit valuation adjustments are not significant to the overall valuation of its interest rate swaps. As a result, the Company determined that its interest rate swaps valuation in its entirety is classified in Level 2 of the fair value hierarchy.

Considerable judgment is necessary to develop estimated fair values of financial assets and liabilities. Accordingly, the estimates presented herein are not necessarily indicative of the amounts the Company could realize or be liable for on disposition of the financial assets and liabilities.

The following tables show the fair value of the Company’s financial assets and liabilities that are required to be measured at fair value on a recurring basis as of December 31, 2022 and 2021 (amounts in thousands):

	December 31, 2022
	Fair Value Hierarchy
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Fair Value
Assets:
Derivative assets	$	—	$	27,990	$	—	$	27,990
Total assets at fair value	$	—	$	27,990	$	—	$	27,990

	December 31, 2021
	Fair Value Hierarchy
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Fair Value
Assets:
Derivative assets	$	—	$	2,171	$	—	$	2,171
Total assets at fair value	$	—	$	2,171	$	—	$	2,171
Liabilities:
Derivative liabilities	$	—	$	5,618	$	—	$	5,618
Total liabilities at fair value	$	—	$	5,618	$	—	$	5,618

Derivative assets and liabilities are reported in the consolidated balance sheets as other assets, and accounts payable and other liabilities, respectively.

Real Estate Assets—Due to the impairment of real estate assets which occurred during the year ended December 31, 2022, the Company has estimated the fair values of these assets using significant unobservable inputs through particular valuation techniques (Level 3). The fair values of real estate assets were determined by using comparable sales information. The comparable sales technique uses estimates of properties similar to the subject property and adjusts those using actual sales of comparable properties for differences in characteristics. The nature and amount of the adjustments made for the difference in characteristics were considered significant and thus are classified within Level 3 of the fair value hierarchy.

The following table shows the fair value of the Company's real estate assets, including acquired intangible assets measured at fair value on a non-recurring basis as of December 31, 2022 (amounts in thousands):

	December 31, 2022
	Fair Value Hierarchy
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Fair Value		Total Losses (1)
Real estate assets	$	—	$	—	$	13,898	$	13,898	$	51,769

(1)Amount includes impairment of in-place lease intangible assets in the amount of approximately $4,345,000.

The following table sets forth quantitative information about the significant unobservable inputs of the Company’s Level 3 real estate recorded as of December 31, 2022:

Significant Unobservable Inputs	December 31, 2022
Comparable sale price per square foot	$5.01	–	$6.56

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Derivative Instruments and Hedging Activities

12 Months Ended

Dec. 31, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedging Activities

Derivative Instruments and Hedging Activities

Cash Flow Hedges of Interest Rate Risk

The Company’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish these objectives, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy. During the years ended December 30, 2022 and 2021, such derivatives were used to hedge the variable cash flows associated with existing variable-rate debt.

For derivatives designated and that qualify as cash flow hedges of interest rate risk, the gain or loss on the derivative is recorded in accumulated other comprehensive income (loss) and subsequently reclassified into interest expense the same period(s) during which the hedged transaction affects earnings. Amounts reported in accumulated other comprehensive income (loss) related to current and terminated derivatives will be reclassified to interest and other expense, net, as interest is incurred on the Company’s variable rate debt. During the next twelve months, the Company estimates that an additional $18,078,000 will be reclassified from accumulated other comprehensive income (loss) as an increase to earnings. During the year ended December 31, 2021, the Company accelerated the reclassification of amounts in other comprehensive income to earnings as a result of the hedged forecasted transactions becoming probable not to occur. The accelerated amounts were a gain of $67,000.

The following table summarizes the notional amount and fair value of the Company’s derivative instruments (amounts in thousands):

Derivatives Designated as Hedging Instruments	Balance Sheet Location	Effective Dates (2), (3)	Maturity Dates (2)	December 31, 2022						December 31, 2021
				Outstanding Notional Amount (2)		Fair Value of				Outstanding Notional Amount		Fair Value of
						Assets		(Liabilities)				Assets		(Liabilities)
Interest rate swaps	(1)	05/01/2022 to 05/01/2023	04/27/2023 to 01/31/2028	$	485,000	$	27,990	$	—	$	400,000	$	2,171	$	(5,618)

(1)     Derivative assets and liabilities are reported in the consolidated balance sheets as other assets and accounts payable and other liabilities, respectively.

(2)    In May 2022, the Company entered into bilateral agreements with its swap counterparties to transition all of its interest rate swap agreements to SOFR. The Company made various ASC 848 elections related to changes in critical terms of the hedging relationships due to reference rate reform to not result in a de-designation of these hedging relationships. As of June 30, 2022, all of the Company's interest rate swap agreements were indexed to SOFR.

The notional amount under the agreements is an indication of the extent of the Company’s involvement in each instrument at the time, but does not represent exposure to credit, interest rate or market risks.

The table below summarizes the amount of income and losses recognized on the interest rate derivatives designated as cash flow hedges for the years ended December 31, 2022, 2021 and 2020 (amounts in thousands):

Derivatives in Cash Flow Hedging Relationships	Amount of Income (Loss) Recognized in Other Comprehensive Income on Derivatives		Location of Loss Reclassified From Accumulated Other Comprehensive Income (Loss) to Net (Loss) Income	Amount of Loss Reclassified From Accumulated Other Comprehensive Income (Loss) to Net (Loss) Income		Total Amount of Line Item in Consolidated Statements of Comprehensive Income
Year Ended December 31, 2022
Interest rate swaps - continuing operations	$	32,317	Interest and other expense, net	$	(520)	$	23,772
Year Ended December 31, 2021
Interest rate swaps - continuing operations	$	5,956	Interest and other expense, net	$	(8,031)	$	34,515
Interest rate swaps - discontinued operations	(37)		Income from discontinued operations	(1,647)		401,444
Total	$	5,919		$	(9,678)
Year Ended December 31, 2020
Interest rate swaps - continuing operations	$	(19,676)	Interest and other expense, net	$	(6,263)	$	42,025
Interest rate swaps - discontinued operations	(3,907)		Income from discontinued operations	(1,580)		27,839
Total	$	(23,583)		$	(7,843)

Credit Risk-Related Contingent Features

The Company has agreements with each of its derivative counterparties that contain a provision where if the Company either defaults or is capable of being declared in default on any of its indebtedness, then the Company could also be declared in default on its derivative obligations. The Company records credit risk valuation adjustments on its interest rate swaps based on the respective credit quality of the Company and the counterparty. The Company believes it mitigates its credit risk by entering into agreements with creditworthy counterparties. As of December 31, 2022, the Company had no derivatives with fair value in a net liability position, inclusive of accrued interest but excluding any adjustment for nonperformance risk related to the agreement. As of December 31, 2022, there were no termination events or events of default related to the interest rate swaps.

Tabular Disclosure Offsetting Derivatives

The Company has elected not to offset derivative positions in its consolidated financial statements. The following tables present the effect on the Company’s financial position had the Company made the election to offset its derivative positions as of December 31, 2022 and December 31, 2021 (amounts in thousands):

Offsetting of Derivative Assets
							Gross Amounts Not Offset in the Balance Sheet
	Gross Amounts of Recognized Assets		Gross Amounts Offset in the Balance Sheet		Net Amounts of Assets Presented in the Balance Sheet		Financial Instruments Collateral		Cash Collateral		Net Amount
December 31, 2022	$	27,990	$	—	$	27,990	$	—	$	—	$	27,990
December 31, 2021	$	2,171	$	—	$	2,171	$	(1,023)	$	—	$	1,148

Offsetting of Derivative Liabilities
							Gross Amounts Not Offset in the Balance Sheet
	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Balance Sheet		Net Amounts of Liabilities Presented in the Balance Sheet		Financial Instruments Collateral		Cash Collateral		Net Amount
December 31, 2022	$	—	$	—	$	—	$	—	$	—	$	—
December 31, 2021	$	5,618	$	—	$	5,618	$	(1,023)	$	—	$	4,595

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Stockholders' Equity

12 Months Ended

Dec. 31, 2022

Stockholders' Equity Note [Abstract]

Stockholders' Equity

Stockholders' Equity

Distributions Paid and Distributions Payable

The Company declared distributions per share of common stock in the amounts of $0.40, $2.19 and $0.48 for the years ended December 31, 2022, 2021 and 2020, respectively. The distributions declared for the year ended December 31, 2021, includes a special cash distribution of $1.75 per share of Class A, Class I, Class T and Class T2 shares of common stock. The special cash distribution was funded with the proceeds from the Data Center Sale. The special cash distribution was paid on July 30, 2021 to stockholders of record at the close of business on July 26, 2021. As of December 31, 2022, the Company had distributions payable of approximately $7,719,000. Of these distributions payable, approximately $5,592,000 was paid in cash and approximately $2,127,000 was reinvested in shares of common stock pursuant to the DRIP on January 6, 2023.

Share Repurchase Program

During the year ended December 31, 2022, the Company repurchased 1,123,183 Class A shares, Class I shares and Class T shares of common stock (981,772 Class A shares, 31,666 Class I shares and 109,745 Class T shares), or 0.50% of shares outstanding as of December 31, 2021, for an aggregate purchase price of approximately $9,217,000 (an average of $8.21 per share). During the year ended December 31, 2021, the Company repurchased 1,133,901 Class A shares, Class I shares and Class T shares of common stock (1,055,054 Class A shares, 11,836 Class I shares and 67,011 Class T shares), or 0.51% of shares outstanding as of December 31, 2020, for an aggregate purchase price of approximately $9,528,000 (an average of $8.40 per share).

Accumulated Other Comprehensive Income (Loss)

The following table presents a rollforward of amounts recognized in accumulated other comprehensive income (loss) by component for the year ended December 31, 2022, 2021 and 2020 (amounts in thousands):

	Unrealized (Loss) Income on Derivative Instruments
Balance as of December 31, 2019	$	(4,704)
Other comprehensive loss before reclassification	(23,583)
Amount of loss reclassified from accumulated other comprehensive loss to net income	7,843
Other comprehensive loss	(15,740)
Balance as of December 31, 2020	(20,444)
Other comprehensive income before reclassification	5,919
Amount of loss reclassified from accumulated other comprehensive loss to net income	9,678
Other comprehensive income	15,597
Balance as of December 31, 2021	(4,847)
Other comprehensive income before reclassification	32,317
Amount of loss reclassified from accumulated other comprehensive (loss) income to net (loss) income	520
Other comprehensive income	32,837
Balance as of December 31, 2022	$	27,990

The following table presents reclassifications out of accumulated other comprehensive income (loss) for the year ended December 31, 2022, 2021 and 2020 (amounts in thousands):

Details about Accumulated Other Comprehensive Income (Loss) Components	Loss Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) to Net (Loss) Income						Affected Line Items in the Consolidated Statements of Comprehensive Income
	Year Ended December 31,
	2022		2021		2020
Interest rate swap contracts - continuing operations	$	520	$	8,031	$	6,263	Interest and other expense, net
Interest rate swap contracts - discontinued operations	—		1,647		$	1,580	Income from discontinued operations
Interest rate swap contracts	$	520	$	9,678	$	7,843

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Earnings Per Share	12 Months Ended
	Dec. 31, 2022
Earnings Per Share [Abstract]
Earnings Per Share	Earnings Per ShareFor the years ended December 31, 2022 and 2021, diluted earnings per share was computed the same as basic earnings per share, because the Company recorded a loss from continuing operations, which would make potentially dilutive shares of 1,341,000 and 968,000, respectively, related to non-vested shares of restricted common stock and performance-based equity awards, or Performance DSUs, anti-dilutive. For the year ended December 31, 2020, diluted earnings per share reflected the effect of approximately 186,000 of non-vested shares of restricted common stock that were outstanding.

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Stock-based Compensation

12 Months Ended

Dec. 31, 2022

Share-Based Payment Arrangement [Abstract]

Stock-based Compensation

Stock-based Compensation

The Board has authorized a total of 5,000,000 Class A shares of common stock for issuance under the A&R Incentive Plan on a fully diluted basis at any time. Subject to certain limited exceptions, restricted stock may not be sold, assigned, transferred, pledged, encumbered, hypothecated or otherwise disposed of and is subject to forfeiture within the vesting period.

The Company recognized accelerated stock-based compensation expense of $326,000 during the year ended December 31, 2022. The Company recognized total stock-based compensation expense of approximately $4,180,000, $2,379,000 and $437,000, respectively, for the years ended December 31, 2022, 2021 and 2020, which is reported in general and administrative expenses in the accompanying consolidated statements of comprehensive income.

As of December 31, 2022 and 2021, there was $6,834,000 and $5,886,000, respectively, of total unrecognized compensation expense related to nonvested shares of the Company’s restricted Class A common stock and Performance DSUs. This expense is expected to be recognized over a remaining weighted average period of 2.02 years. This expected expense does not include the impact of any future stock-based compensation awards.

The fair value of each restricted stock and Performance DSU award is estimated based on the most recent Estimated Per Share NAV. As of December 31, 2022 and 2021, the fair value of the nonvested shares of restricted Class A common stock and Performance DSUs was $11,703,000 and $7,991,000, respectively. A summary of the status of the nonvested shares of restricted Class A common stock and Performance DSUs as of December 31, 2021 and the changes for the year ended December 31, 2022 is presented below:

Restricted Stock and and Performance DSUs	Shares
Nonvested restricted Class A common stock and Performance DSUs at December 31, 2021	974,558
Vested Class A common stock	(167,500)
Vested Performance DSUs	(5,387)
Forfeited restricted Class A common stock	(16,344)
Forfeited Performance DSUs	(15,438)
Granted restricted Class A common stock	335,854
Granted Performance DSUs	317,947
Nonvested restricted Class A common stock and Performance DSUs at December 31, 2022	1,423,690

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Income Taxes

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

As a REIT, the Company generally will not be subject to U.S. federal income tax on taxable income that it distributes to the stockholders. For U.S. federal income tax purposes, distributions to stockholders are characterized as either ordinary dividends, capital gain distributions, or nontaxable distributions. Nontaxable distributions will reduce U.S. stockholders’ respective bases in their shares. The following table shows the character of distributions the Company paid on a percentage basis during the years ended December 31, 2022, 2021 and 2020:

	Year Ended December 31,
Character of Distributions (1):	2022		2021		2020
Ordinary dividends	40.94	%	27.91	%	—	%
Capital gain distributions	—	%	—	%	—	%
Nontaxable distributions	59.06	%	72.09	%	100.00	%
Total	100.00	%	100.00	%	100.00	%
	Year Ended December 31,
Character of Special Distribution (1):	2022		2021		2020
Ordinary dividends	—	%	12.39	%	—	%
Capital gain distributions	—	%	86.66	%	—	%
Nontaxable distributions	—	%	0.95	%	—	%
Total	—	%	100.00	%	—	%

(1)Attributable to Class A shares, Class I shares, Class T shares and Class T2 shares of common stock.

The Company applies the rules under ASC 740-10, Accounting for Uncertainty in Income Taxes, for uncertain tax positions using a “more likely than not” recognition threshold for tax positions. Pursuant to these rules, the financial statement effects of a tax position are initially recognized when it is more likely than not, based on the technical merits of the tax position, that such a position will be sustained upon examination by the relevant tax authorities. If the tax benefit meets the “more likely than not” threshold, the measurement of the tax benefit will be based on the Company's estimate of the ultimate tax benefit to be sustained if audited by the taxing authority. The Company concluded there was no impact related to uncertain tax positions from the results of the operations of the Company for the years ended December 31, 2022, 2021 and 2020. The earliest tax year currently subject to examination is 2019.

The Company’s policy is to recognize accrued interest related to unrecognized tax benefits as a component of interest expense and penalties related to unrecognized tax benefits as a component of general and administrative expenses. From inception through December 31, 2022, the Company has not recognized any interest expense or penalties related to unrecognized tax benefits.

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Commitments and Contingencies

12 Months Ended

Dec. 31, 2022

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

Legal Proceedings

In the ordinary course of business, the Company may become subject to litigation or claims. As of December 31, 2022, there were, and currently there are, no material pending legal proceedings to which the Company is a party. While the resolution of a lawsuit or proceeding may have an impact to the Company's financial results for the period in which it is resolved, the Company believes that the final resolution of the lawsuits or proceedings in which it is currently involved, either individually or in the aggregate, will not have a material adverse effect on its financial position, results of operations or liquidity.

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Selected Quarterly Financial Data (Unaudited)

12 Months Ended

Dec. 31, 2022

Quarterly Financial Information Disclosure [Abstract]

Selected Quarterly Financial Data (Unaudited)

Selected Quarterly Financial Data (Unaudited)

Presented in the following table is a summary of the unaudited quarterly financial information for the years ended December 31, 2022 and 2021. The Company believes that all necessary adjustments, consisting only of normal recurring adjustments, have been included in the amounts stated below to present fairly, and in accordance with GAAP, the selected quarterly information (amounts in thousands, except shares and per share data):

	2022
	Fourth Quarter		Third Quarter		Second Quarter		First Quarter
Total revenue	$	43,905	$	46,881	$	44,918	$	44,282
Total expenses	(72,837)		(27,991)		(28,568)		(35,256)
Gain on real estate disposition	—		—		—		460
Interest and other expense, net	(5,830)		(5,498)		(4,329)		(8,115)
(Loss) income from operations	(34,762)		13,392		12,021		1,371
Net (loss) income attributable to common stockholders	$	(34,762)	$	13,392	$	12,021	$	1,371
Net (loss) income per common share attributable to common stockholders:
Basic:
Net (loss) income attributable to common stockholders	$	(0.15)	$	0.06	$	0.05	$	0.01
Diluted:
Net (loss) income attributable to common stockholders	$	(0.15)	$	0.06	$	0.05	$	0.01
Weighted average number of common shares outstanding:
Basic	226,112,737		225,638,485		225,008,452		224,499,307
Diluted	226,112,737		226,957,015		226,362,977		225,865,366
	2021
	Fourth Quarter		Third Quarter		Second Quarter		First Quarter
Total revenue	$	43,606	$	43,063	$	43,747	$	42,422
Total expenses	(27,138)		(36,872)		(34,462)		(38,724)
Gain on real estate disposition	89		—		—		—
Interest and other expense, net	(4,480)		(11,737)		(9,534)		(8,764)
Income (loss) from continuing operations	12,077		(5,546)		(249)		(5,066)
Income from discontinued operations	—		377,191		16,305		7,948
Net income attributable to common stockholders	$	12,077	$	371,645	$	16,056	$	2,882
Net income (loss) per common share attributable to common stockholders:
Basic:
Continuing operations	$	0.05	$	(0.03)	$	—	$	(0.02)
Discontinued operations	—		1.69		0.07		0.03
Net income attributable to common stockholders	$	0.05	$	1.66	$	0.07	$	0.01
Diluted:
Continuing operations	$	0.05	$	(0.03)	$	—	$	(0.02)
Discontinued operations	—		1.69		0.07		0.03
Net income attributable to common stockholders	$	0.05	$	1.66	$	0.07	$	0.01
Weighted average number of common shares outstanding:
Basic	224,054,323		223,661,774		223,082,912		222,481,179
Diluted	225,031,906		223,661,774		223,082,912		222,481,179

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Subsequent Events

12 Months Ended

Dec. 31, 2022

Subsequent Events [Abstract]

Subsequent Events

Subsequent Events

Distributions Paid to Stockholders

The following table summarizes the Company's distributions paid to stockholders on January 6, 2023, for the period from December 1, 2022 through December 31, 2022 (amounts in thousands):

Payment Date	Common Stock	Cash		DRIP		Total Distribution
January 6, 2023	Class A	$	4,506	$	1,249	$	5,755
January 6, 2023	Class I	338		231		569
January 6, 2023	Class T	748		647		1,395
		$	5,592	$	2,127	$	7,719

The following table summarizes the Company's distributions paid to stockholders on February 6, 2023, for the period from January 1, 2023 through January 31, 2023 (amounts in thousands):

Payment Date	Common Stock	Cash		DRIP		Total Distribution
February 6, 2023	Class A	$	4,522	$	1,245	$	5,767
February 6, 2023	Class I	339		231		570
February 6, 2023	Class T	748		649		1,397
		$	5,609	$	2,125	$	7,734

The following table summarizes the Company's distributions paid to stockholders on March 6, 2023, for the period from February 1, 2023 through February 28, 2023 (amounts in thousands):

Payment Date	Common Stock	Cash		DRIP		Total Distribution
March 6, 2023	Class A	$	4,081	$	1,123	$	5,204
March 6, 2023	Class I	307		209		516
March 6, 2023	Class T	675		587		1,262
		$	5,063	$	1,919	$	6,982

Distributions Authorized

The following tables summarize the daily distributions approved and authorized by the Board subsequent to December 31, 2022:

Authorization Date (1)	Common Stock	Daily Distribution Rate (1)		Annualized Distribution Per Share
January 18, 2023	Class A	$	0.00109589	$	0.40
January 18, 2023	Class I	$	0.00109589	$	0.40
January 18, 2023	Class T	$	0.00109589	$	0.40

Authorization Date (2)	Common Stock	Daily Distribution Rate (2)		Annualized Distribution Per Share
February 17, 2023	Class A	$	0.00109589	$	0.40
February 17, 2023	Class I	$	0.00109589	$	0.40
February 17, 2023	Class T	$	0.00109589	$	0.40

Authorization Date (3)	Common Stock	Daily Distribution Rate (2)		Annualized Distribution Per Share
March 15, 2023	Class A	$	0.00109589	$	0.40
March 15, 2023	Class I	$	0.00109589	$	0.40
March 15, 2023	Class T	$	0.00109589	$	0.40

(1)Distributions approved and authorized to stockholders of record as of the close of business on each day of the period commencing on February 1, 2023 and ending on February 28, 2023. The distributions are calculated based on 365 days in the calendar year. The distributions declared for each record date in February 2023 were paid in March 2023. The distributions are payable to stockholders from legally available funds therefor.

(2)Distributions approved and authorized to stockholders of record as of the close of business on each day of the period commencing on March 1, 2023 and ending on March 31, 2023. The distributions will be calculated based on 365 days in the calendar year. The distributions declared for each record date in March 2023 will be paid in April 2023. The distributions will be payable to stockholders from legally available funds therefor.

(3)Distributions approved and authorized to stockholders of record as of the close of business on each day of the period commencing on April 1, 2023 and ending on April 30, 2023. The distributions will be calculated based on 365 days in the calendar year. The distributions declared for each record date in April 2023 will be paid in May 2023. The distributions will be payable to stockholders from legally available funds therefor.

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SCHEDULE III - REAL ESTATE ASSETS AND ACCUMULATED DEPRECIATION

12 Months Ended

Dec. 31, 2022

SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation Disclosure [Abstract]

SCHEDULE III - REAL ESTATE ASSETS AND ACCUMULATED DEPRECIATION

SCHEDULE III — REAL ESTATE ASSETS AND ACCUMULATED DEPRECIATION

December 31, 2022

(in thousands)

					Initial Cost				Cost Capitalized Subsequent to Acquisition (b)		Gross Amount Carried at December 31, 2022
Property Description	Location	Encumbrances			Land		Buildings and Improvements				Land		Buildings and Improvements (c)		Total		Accumulated Depreciation (d)		Year Constructed	Year Renovated	Date Acquired
Houston Healthcare Facility	Houston, TX	$	—	(a)	$	762	$	2,970	$	106	$	762	$	3,076	$	3,838	$	857	1993	—	07/31/2014
Cincinnati Healthcare Facility	Cincinnati, OH	—		(a)	356		3,167		89		356		3,256		3,612		804		2001	—	10/29/2014
Winston-Salem Healthcare Facility	Winston-Salem, NC	—		(a)	684		4,903		—		684		4,903		5,587		1,175		2004	—	12/17/2014
Stoughton Healthcare Facility	Stoughton, MA	—		(a)	4,049		19,991		3,247		4,049		23,238		27,287		4,970		1973	1997	12/23/2014
Fort Worth Healthcare Facility	Fort Worth, TX	—		(a)	8,297		35,615		—		8,297		35,615		43,912		7,508		2014	—	12/31/2014
Fort Worth Healthcare Facility II	Fort Worth, TX	—		(a)	367		1,587		201		367		1,788		2,155		621		2014	—	12/31/2014
Winter Haven Healthcare Facility	Winter Haven, FL	—		(a)	—		2,805		—		—		2,805		2,805		620		2009	—	01/27/2015
Overland Park Healthcare Facility	Overland Park, KS	—		(a)	1,558		20,549		—		1,558		20,549		22,107		4,254		2014	—	02/17/2015
Clarion Healthcare Facility	Clarion, PA	—		(a)	462		5,377		—		462		5,377		5,839		1,371		2012	—	06/01/2015
Webster Healthcare Facility	Webster, TX	—		(a)	1,858		20,140		—		1,858		20,140		21,998		3,983		2015	—	06/05/2015
Augusta Healthcare Facility	Augusta, ME	—		(a)	556		14,401		103		556		14,504		15,060		3,042		2010	—	07/22/2015
Cincinnati Healthcare Facility II	Cincinnati, OH	—		(a)	1,812		24,382		(14,422)		943		10,829		11,772		—		1960	2014	07/22/2015
Cincinnati Healthcare Facility III	Cincinnati, OH	—		(a)	446		10,239		4		446		10,243		10,689		2,031		2014	—	07/22/2015
Florence Healthcare Facility	Florence, KY	—		(a)	650		9,919		—		650		9,919		10,569		1,960		2014	—	07/22/2015
Oakland Healthcare Facility	Oakland, ME	—		(a)	229		5,416		—		229		5,416		5,645		1,235		2004	—	07/22/2015
Wyomissing Healthcare Facility	Wyomissing, PA	—		(a)	1,504		20,193		—		1,504		20,193		21,697		4,070		2007	—	07/24/2015
Luling Healthcare Facility	Luling, TX	—		(a)	824		7,530		—		824		7,530		8,354		1,509		2003	—	07/30/2015
Omaha Healthcare Facility	Omaha, NE	—		(a)	1,259		9,796		—		1,259		9,796		11,055		1,856		2014	—	10/14/2015
Sherman Healthcare Facility	Sherman, TX	—		(a)	1,679		23,926		—		1,679		23,926		25,605		4,429		2005	2010	11/20/2015
Sherman Healthcare Facility II	Sherman, TX	—		(a)	214		3,209		—		214		3,209		3,423		599		2005	—	11/20/2015
Fort Worth Healthcare Facility III	Fort Worth, TX	—		(a)	3,120		9,312		—		3,120		9,312		12,432		1,725		1998	2007/2015	12/23/2015
Oklahoma City Healthcare Facility	Oklahoma City, OK	—		(a)	4,626		30,509		—		4,626		30,509		35,135		5,834		1985	1998/2003	12/29/2015
Oklahoma City Healthcare Facility II	Oklahoma City, OK	—		(a)	991		8,366		—		991		8,366		9,357		1,701		1994	1999	12/29/2015
Edmond Healthcare Facility	Edmond, OK	—		(a)	796		3,199		—		796		3,199		3,995		655		2002	—	01/20/2016
Oklahoma City Healthcare Facility III	Oklahoma City, OK	—		(a)	452		1,081		—		452		1,081		1,533		227		2006	—	01/27/2016
Oklahoma City Healthcare Facility IV	Oklahoma City, OK	—		(a)	368		2,344		—		368		2,344		2,712		480		2007	—	01/27/2016
Newcastle Healthcare Facility	Newcastle, OK	—		(a)	412		1,173		—		412		1,173		1,585		245		1995	1999	02/03/2016
Oklahoma City Healthcare Facility V	Oklahoma City, OK	—		(a)	541		12,445		—		541		12,445		12,986		2,524		2008	—	02/11/2016
Rancho Mirage Healthcare Facility	Rancho Mirage, CA	—		(a)	2,724		7,626		29,844		2,726		37,468		40,194		4,098		2018	—	03/01/2016
Oklahoma City Healthcare Facility VI	Oklahoma City, OK	—		(a)	896		3,684		—		896		3,684		4,580		760		2007	—	03/07/2016
Oklahoma City Healthcare Facility VII	Oklahoma City, OK	—		(a)	3,203		32,380		—		3,203		32,380		35,583		5,558		2016	—	06/22/2016
Las Vegas Healthcare Facility	Las Vegas, NV	—		(a)	2,614		639		22,091		2,895		22,449		25,344		2,985		2017	—	06/24/2016
Oklahoma City Healthcare Facility VIII	Oklahoma City, OK	—		(a)	2,002		15,384		—		2,002		15,384		17,386		2,605		1997	2008	06/30/2016
Marlton Healthcare Facility	Marlton, NJ	—		(a)	—		57,154		5		—		57,159		57,159		8,755		1995	—	11/01/2016
Grand Rapids Healthcare Facility	Grand Rapids, MI	—		(a)	2,533		39,487		1,034		2,533		40,521		43,054		7,150		2008	—	12/07/2016
Corpus Christi Healthcare Facility	Corpus Christi, TX	—		(a)	975		4,963		716		1,002		5,652		6,654		967		1992	2,016	12/22/2016
Aurora Healthcare Facility	Aurora, IL	—		(a)	973		9,632		19		973		9,651		10,624		1,507		2002	—	03/30/2017

				Initial Cost		Cost Capitalized Subsequent to Acquisition (b)	Gross Amount Carried at December 31, 2022
Property Description	Location	Encumbrances		Land	Buildings and Improvements		Land	Buildings and Improvements (c)	Total	Accumulated Depreciation (d)	Year Constructed	Year Renovated	Date Acquired
Allen Healthcare Facility	Allen, TX	—	(a)	857	20,582	—	857	20,582	21,439	3,209	2007	—	03/31/2017
Austin Healthcare Facility	Austin, TX	—	(a)	1,368	32,039	—	1,368	32,039	33,407	4,996	2012	—	03/31/2017
Beaumont Healthcare Facility	Beaumont, TX	—	(a)	946	8,372	—	946	8,372	9,318	1,313	1991	—	03/31/2017
San Antonio Healthcare Facility	San Antonio, TX	—	(a)	1,813	11,706	—	1,813	11,706	13,519	1,759	1984	—	06/29/2017
Silverdale Healthcare Facility	Silverdale, WA	—	(a)	1,530	7,506	15	1,530	7,521	9,051	1,237	2005	—	08/25/2017
Silverdale Healthcare Facility II	Silverdale, WA	—	(a)	1,542	4,981	—	1,542	4,981	6,523	885	2007	—	09/20/2017
Saginaw Healthcare Facility	Saginaw, MI	—	(a)	1,251	15,878	235	1,251	16,113	17,364	2,928	2002	—	12/21/2017
Carrollton Healthcare Facility	Carrollton, TX	—	(a)	1,995	5,870	39	1,995	5,909	7,904	771	2015	—	04/27/2018
Katy Healthcare Facility	Katy, TX	—	(a)	1,443	12,114	—	1,443	12,114	13,557	1,428	2015	—	06/08/2018
Indianola Healthcare Facility	Indianola, IA	—	(a)	330	5,698	67	330	5,765	6,095	669	2014	—	09/26/2018
Indianola Healthcare Facility II	Indianola, IA	—	(a)	709	6,061	—	709	6,061	6,770	733	2011	—	09/26/2018
Benton Healthcare Facility	Benton, AR	—	(a)	—	19,048	—	—	19,048	19,048	2,177	1992/1999	2012	10/17/2018
Benton Healthcare Facility II	Benton, AR	—	(a)	—	1,647	—	—	1,647	1,647	209	1983	—	10/17/2018
Bryant Healthcare Facility	Bryant, AR	—	(a)	930	3,539	—	930	3,539	4,469	446	1995	—	10/17/2018
Hot Springs Healthcare Facility	Hot Springs, AR	—	(a)	384	2,077	—	384	2,077	2,461	270	2009	—	10/17/2018
Clive Healthcare Facility	Clive, IA	—	(a)	336	22,332	158	336	22,490	22,826	2,920	2008	—	11/26/2018
Valdosta Healthcare Facility	Valdosta, GA	—	(a)	659	5,626	—	659	5,626	6,285	730	2004	—	11/28/2018
Valdosta Healthcare Facility II	Valdosta, GA	—	(a)	471	2,780	—	471	2,780	3,251	366	1992	—	11/28/2018
Bryant Healthcare Facility II	Bryant, AR	—	(a)	647	3,364	—	647	3,364	4,011	323	2016	—	08/16/2019
Laredo Healthcare Facility	Laredo, TX	—	(a)	—	12,137	—	—	12,137	12,137	1,083	1998	—	09/19/2019
Laredo Healthcare Facility II	Laredo, TX	—	(a)	—	23,677	83	—	23,760	23,760	2,157	1998	—	09/19/2019
Poplar Bluff Healthcare Facility	Poplar Bluff, MO	—	(a)	—	13,515	—	—	13,515	13,515	1,211	2013	—	09/19/2019
Tucson Healthcare Facility	Tucson, AZ	—	(a)	—	5,998	—	—	5,998	5,998	540	1998	—	09/19/2019
Akron Healthcare Facility	Green, OH	—	(a)	3,503	38,512	—	3,503	38,512	42,015	3,293	2012	—	10/04/2019
Akron Healthcare Facility II	Green, OH	—	(a)	1,085	10,277	—	1,085	10,277	11,362	1,056	2013	—	10/04/2019
Akron Healthcare Facility III	Akron, OH	—	(a)	2,206	26,044	—	2,206	26,044	28,250	2,152	2008	—	10/04/2019
Alexandria Healthcare Facility	Alexandria, LA	—	(a)	—	5,076	—	—	5,076	5,076	419	2007	—	10/04/2019
Appleton Healthcare Facility	Appleton, WI	—	(a)	414	1,900	—	414	1,900	2,314	209	2011	—	10/04/2019
Austin Healthcare Facility II	Austin, TX	—	(a)	3,229	7,534	(2,807)	2,195	5,761	7,956	489	2006	—	10/04/2019
Bellevue Healthcare Facility	Green Bay, WI	—	(a)	567	1,269	—	567	1,269	1,836	145	2010	—	10/04/2019
Bonita Springs Healthcare Facility	Bonita Springs, FL	—	(a)	1,199	4,373	—	1,199	4,373	5,572	371	2002	2005	10/04/2019
Bridgeton Healthcare Facility	Bridgeton, MO	—	(a)	—	39,740	—	—	39,740	39,740	3,270	2012	—	10/04/2019
Covington Healthcare Facility	Covington, LA	—	(a)	2,238	16,635	—	2,238	16,635	18,873	1,362	1984	—	10/04/2019
Crestview Healthcare Facility	Crestview, FL	—	(a)	400	1,536	—	400	1,536	1,936	146	2004	2010	10/04/2019
Dallas Healthcare Facility	Dallas, TX	—	(a)	6,072	27,457	—	6,072	27,457	33,529	2,211	2011	—	10/04/2019
De Pere Healthcare Facility	De Pere, WI	—	(a)	615	1,596	—	615	1,596	2,211	176	2005	—	10/04/2019
Denver Healthcare Facility	Thornton, CO	—	(a)	3,586	32,363	—	3,586	32,363	35,949	2,688	1962	2018	10/04/2019
El Segundo Healthcare Facility	El Segundo, CA	—	(a)	2,659	9,016	—	2,659	9,016	11,675	748	2009	—	10/04/2019
Fairlea Healthcare Facility	Fairlea, WV	—	(a)	139	1,910	—	139	1,910	2,049	167	1999	—	10/04/2019
Fayetteville Healthcare Facility	Fayetteville, AR	—	(a)	485	24,855	—	485	24,855	25,340	2,035	1994	2009	10/04/2019
Fort Myers Healthcare Facility	Fort Myers, FL	—	(a)	2,153	2,387	—	2,153	2,387	4,540	246	1999	—	10/04/2019
Fort Myers Healthcare Facility II	Fort Myers, FL	—	(a)	3,557	11,064	—	3,557	11,064	14,621	1,063	2010	2022	10/04/2019

				Initial Cost		Cost Capitalized Subsequent to Acquisition (b)	Gross Amount Carried at December 31, 2022
Property Description	Location	Encumbrances		Land	Buildings and Improvements		Land	Buildings and Improvements (c)	Total	Accumulated Depreciation (d)	Year Constructed	Year Renovated	Date Acquired
Fort Walton Beach Healthcare Facility	Fort Walton Beach, FL	—	(a)	385	3,182	—	385	3,182	3,567	277	2005	—	10/04/2019
Frankfort Healthcare Facility	Frankfort, KY	—	(a)	342	950	—	342	950	1,292	93	1993	2019	10/04/2019
Frisco Healthcare Facility	Frisco, TX	—	(a)	—	22,114	4,653	—	26,767	26,767	2,926	2010	2020	10/04/2019
Goshen Healthcare Facility	Goshen, IN	—	(a)	383	5,355	—	383	5,355	5,738	484	2010	—	10/04/2019
Hammond Healthcare Facility	Hammond, LA	—	(a)	2,693	23,750	—	2,693	23,750	26,443	2,019	2006	—	10/04/2019
Hammond Healthcare Facility II	Hammond, LA	—	(a)	950	12,147	—	950	12,147	13,097	1,021	2004	—	10/04/2019
Harlingen Healthcare Facility	Harlingen, TX	—	(a)	—	10,628	(10,378)	—	250	250	—	2007	—	10/04/2019
Henderson Healthcare Facility	Henderson, NV	—	(a)	839	2,390	—	839	2,390	3,229	217	2000	—	10/04/2019
Houston Healthcare Facility III	Houston, TX	—	(a)	752	5,832	—	752	5,832	6,584	481	1998	2018	10/04/2019
Howard Healthcare Facility	Howard, WI	—	(a)	529	1,818	—	529	1,818	2,347	202	2011	—	10/04/2019
Jacksonville Healthcare Facility	Jacksonville, FL	—	(a)	1,233	6,173	—	1,233	6,173	7,406	540	2009	—	10/04/2019
Lafayette Healthcare Facility	Lafayette, LA	—	(a)	4,819	35,424	—	4,819	35,424	40,243	2,947	2004	2005	10/04/2019
Lakewood Ranch Healthcare Facility	Lakewood Ranch, FL	—	(a)	636	1,784	—	636	1,784	2,420	198	2008	—	10/04/2019
Las Vegas Healthcare Facility II	Las Vegas, NV	—	(a)	651	5,323	—	651	5,323	5,974	460	2007	—	10/04/2019
Lehigh Acres Healthcare Facility	Lehigh Acres, FL	—	(a)	441	2,956	—	441	2,956	3,397	268	2002	—	10/04/2019
Lubbock Healthcare Facility	Lubbock, TX	—	(a)	5,210	39,939	—	5,210	39,939	45,149	3,264	2003	—	10/04/2019
Manitowoc Healthcare Facility	Manitowoc, WI	—	(a)	257	1,733	—	257	1,733	1,990	185	2003	—	10/04/2019
Manitowoc Healthcare Facility II	Manitowoc, WI	—	(a)	250	11,231	—	250	11,231	11,481	1,012	1964	2010	10/04/2019
Marinette Healthcare Facility	Marinette, WI	—	(a)	208	1,002	—	208	1,002	1,210	110	2008	—	10/04/2019
New Bedford Healthcare Facility	New Bedford, MA	—	(a)	2,464	26,297	(27,522)	115	1,124	1,239	—	1942	1995	10/04/2019
New Braunfels Healthcare Facility	New Braunfels, TX	—	(a)	2,568	11,386	—	2,568	11,386	13,954	945	2007	—	10/04/2019
North Smithfield Healthcare Facility	North Smithfield, RI	—	(a)	1,309	14,024	—	1,309	14,024	15,333	1,229	1965	2000	10/04/2019
Oklahoma City Healthcare Facility IX	Oklahoma City, OK	—	(a)	1,316	9,822	—	1,316	9,822	11,138	930	2007	—	10/04/2019
Oshkosh Healthcare Facility	Oshkosh, WI	—	(a)	414	2,043	—	413	2,044	2,457	207	2010	—	10/04/2019
Palm Desert Healthcare Facility	Palm Desert, CA	—	(a)	582	5,927	—	582	5,927	6,509	548	2005	—	10/04/2019
Rancho Mirage Healthcare Facility II	Rancho Mirage, CA	—	(a)	2,286	5,481	—	2,286	5,481	7,767	497	2008	—	10/04/2019
San Antonio Healthcare Facility III	San Antonio, TX	—	(a)	1,824	22,809	—	1,824	22,809	24,633	1,854	2012	—	10/04/2019
San Antonio Healthcare Facility IV	San Antonio, TX	—	(a)	—	31,694	—	—	31,694	31,694	2,576	1987	—	10/04/2019
San Antonio Healthcare Facility V	San Antonio, TX	—	(a)	3,273	19,697	1,023	3,273	20,720	23,993	1,849	2017	—	10/04/2019
Santa Rosa Beach Healthcare Facility	Santa Rosa Beach, FL	—	(a)	741	3,049	—	741	3,049	3,790	249	2003	—	10/04/2019
Savannah Healthcare Facility	Savannah, GA	—	(a)	2,300	20,186	—	2,300	20,186	22,486	1,653	2014	—	10/04/2019
Sturgeon Bay Healthcare Facility	Sturgeon Bay, WI	—	(a)	248	700	—	248	700	948	84	2007	—	10/04/2019
Victoria Healthcare Facility	Victoria, TX	—	(a)	328	12,908	—	328	12,908	13,236	1,078	2013	—	10/04/2019
Victoria Healthcare Facility II	Victoria, TX	—	(a)	446	12,986	—	446	12,986	13,432	1,074	1998	—	10/04/2019
Webster Healthcare Facility II	Webster, TX	—	(a)	7,371	243,983	4,584	7,371	248,567	255,938	19,913	2014	2019	10/04/2019
Wilkes-Barre Healthcare Facility	Mountain Top, PA	—	(a)	821	4,139	—	821	4,139	4,960	388	2012	—	10/04/2019
Yucca Valley Healthcare Facility	Yucca Valley, CA	—	(a)	901	4,788	—	901	4,788	5,689	465	2009	—	10/04/2019
Tucson Healthcare Facility II	Tucson, AZ	—	(a)	—	—	25,324	—	25,324	25,324	1,102	2021	—	12/26/2019
Tucson Healthcare Facility III	Tucson, AZ	—	(a)	1,763	—	8,177	1,763	8,177	9,940	668	2020	—	12/27/2019
Grimes Healthcare Facility	Grimes, IA	—	(a)	831	3,690	—	831	3,690	4,521	309	2018	—	02/19/2020

					Initial Cost				Cost Capitalized Subsequent to Acquisition (b)		Gross Amount Carried at December 31, 2022
Property Description	Location	Encumbrances			Land		Buildings and Improvements				Land		Buildings and Improvements (c)		Total		Accumulated Depreciation (d)		Year Constructed	Year Renovated	Date Acquired
Tampa Healthcare Facility	Tampa, FL	—		(a)	—		10,297		—		—		10,297		10,297		794		2015	—	09/08/2020
Tucson Healthcare Facility IV	Tucson, AZ	—			—		58		17,445		—		17,503		17,503		558		2022	—	12/22/2020
Greenwood Healthcare Facility	Greenwood, IN	—		(a)	1,603		22,588		—		1,603		22,588		24,191		1,004		2008	2018	04/19/2021
Clive Healthcare Facility II	Clive, IA	—		(a)	1,555		17,898		—		1,555		17,898		19,453		547		2008	—	12/08/2021
Clive Healthcare Facility III	Clive, IA	—		(a)	843		12,299		—		843		12,299		13,142		322		2008	—	12/08/2021
Clive Healthcare Facility IV	Clive, IA	—		(a)	720		7,863		—		720		7,863		8,583		255		2009	2018	12/08/2021
Clive Undeveloped Land	Clive, IA	—			1,061		—		—		1,061		—		1,061		—		—	—	12/08/2021
Clive Undeveloped Land II	Clive, IA	—			460		—		—		460		—		460		—		—	—	12/08/2021
Yukon Healthcare Facility	Yukon, OK	—			1,288		16,779		—		1,288		16,779		18,067		369		2020	—	03/10/2022
Pleasant Hills Healthcare Facility	Pleasant Hills, PA	—			922		12,905		—		922		12,905		13,827		270		2015	—	05/12/2022
Prosser Healthcare Facility I	Prosser, WA	—			282		1,933		—		282		1,933		2,215		40		2020	—	05/20/2022
Prosser Healthcare Facility II	Prosser, WA	—			95		3,374		—		95		3,374		3,469		68		2013	2019	05/20/2022
Prosser Healthcare Facility III	Prosser, WA	—			59		2,070		—		59		2,070		2,129		41		2013	—	05/20/2022
Tampa Healthcare Facility II	Tampa, FL	—			—		47,042		—		—		47,042		47,042		572		2022	—	07/20/2022
Escondido Healthcare Facility	Escondido, CA	—			—		57,675		—		—		57,675		57,675		680		2021	—	07/21/2022
		$	—		$	167,362	$	1,857,705	$	64,133	$	163,419	$	1,925,781	$	2,089,200	$	209,118

(a)Property is contributed to the pool of unencumbered properties of the Company's credit facility. As of December 31, 2022, 124 commercial real estate properties were contributed to the pool of unencumbered properties under the Company's credit facility and we had an outstanding principal balance of $583,000,000.

(b)The reduction to costs capitalized subsequent to acquisition primarily include impairment charges, property dispositions and other adjustments.

(c)The aggregated cost for federal income tax purposes is approximately $2,284,522,000 (unaudited).

(d)The Company’s assets are depreciated or amortized using the straight-line method over the useful lives of the assets by class. Generally, buildings and improvements are depreciated over 15-40 years and tenant improvements are depreciated over the shorter of lease term or expected useful life.

NOTES TO SCHEDULE III — REAL ESTATE ASSETS AND ACCUMULATED DEPRECIATION

December 31, 2022

(in thousands)

	Year Ended December 31,
	2022		2021		2020
Real Estate:
Balance at beginning of year	$	2,015,330	$	2,890,958	$	2,896,766
Additions:
Acquisitions	144,424		66,890		14,876
Improvements	4,735		23,288		31,260
Other adjustments	182		978		—
Deductions:
Impairment	(53,230)		(29,673)		—
Dispositions	(22,241)		(936,594)		(51,944)
Other adjustments	—		(517)		—
Balance at end of year	$	2,089,200	$	2,015,330	$	2,890,958
Accumulated Depreciation:
Balance at beginning of year	$	(165,784)	$	(197,134)	$	(128,304)
Additions:
Depreciation	(51,584)		(56,999)		(69,623)
Deductions:
Impairment	8,250		2,507		—
Dispositions	—		85,325		793
Other adjustments	—		517		—
Balance at end of year	$	(209,118)	$	(165,784)	$	(197,134)

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Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2022

Accounting Policies [Abstract]

Principles of Consolidation and Basis of Presentation

Principles of Consolidation and Basis of Presentation

The accompanying consolidated financial statements include the accounts of the Company, the Operating Partnership, and their wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation.

Use of Estimates

Use of Estimates

The preparation of the consolidated financial statements and accompanying notes in conformity with GAAP requires the Company to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. These estimates are made and evaluated on an ongoing basis using information that is currently available as well as various other assumptions believed to be reasonable under the circumstances. Actual results could differ from those estimates.

Restricted Cash

Restricted CashRestricted cash consists of cash held in escrow accounts for tenant and capital improvements in accordance with the respective tenants' lease agreements. Restricted cash is reported in other assets, in the accompanying consolidated balance sheets.

Investment in Real Estate

Investment in Real Estate

Real estate costs related to the acquisition, development, construction and improvement of properties are capitalized. Repair and maintenance costs are expensed as incurred and significant replacements and improvements are capitalized. Repair and maintenance costs include all costs that do not extend the useful life of the real estate assets. The Company considers the period of future benefit of an asset in determining the appropriate useful life. Real estate assets, other than land, are depreciated on a straight-line basis over each asset’s useful life. The Company anticipates the estimated useful lives of its assets by class as follows:

Buildings and improvements	15 – 40 years
Tenant improvements	Shorter of lease term or expected useful life
Furniture, fixtures, and equipment	3 – 10 years

Allocation of Purchase Price of Real Estate

Allocation of Purchase Price of Real Estate

Upon the acquisition of real estate properties, the Company evaluates whether the acquisition is a business combination or an asset acquisition. For both business combinations and asset acquisitions, the Company allocates the purchase price of properties to acquired tangible assets, consisting of land, buildings and improvements, and acquired intangible assets and liabilities, consisting of the value of above-market and below-market leases and the value of in-place leases. For asset acquisitions, the Company capitalizes transaction costs and allocates the purchase price using a relative fair value method allocating all accumulated costs. For business combinations, the Company expenses transaction costs incurred and allocates the purchase price based on the estimated fair value of each separately identifiable asset and liability. For the year ended December 31, 2022, all of the Company's acquisitions were determined to be asset acquisitions.

The fair value of the tangible assets of an acquired property (which includes land, buildings and improvements) is determined by valuing the property as if it were vacant, and the “as-if-vacant” value is then allocated to land and buildings and improvements based on management’s determination of the relative fair value of these assets.

The amount allocated to in-place leases includes an estimate of direct costs associated with obtaining a new tenant and opportunity costs associated with lost rentals that are avoided by acquiring an in-place lease. These lease intangibles are amortized to depreciation and amortization expense over the remaining terms of the respective leases. If a lease were to be terminated prior to its stated expiration, all unamortized amounts of in-place lease assets relating to that lease would be expensed.

The amounts allocated to above-market and below-market leases are recorded based on the present value of the difference between: (i) the contractual amounts to be paid pursuant to the in-place leases and (ii) an estimate of current market lease rates for the corresponding leases, measured over a period equal to the remaining non-cancelable term of the lease including any fixed rate bargain renewal periods, with respect to a below-market lease. These above-market and below market amounts are amortized as an adjustment of rental revenue over the remaining terms of the respective leases. If a lease were to be terminated prior to its stated expiration, all unamortized amounts of above-market and below-market lease values related to that lease would be recorded as an adjustment to rental revenue.

Held for Sale

Held for Sale

The Company classifies a real estate property as held for sale upon satisfaction of all of the following criteria: (i) management commits to a plan to sell the property; (ii) the property is available for immediate sale in its present condition, subject only to terms that are usual and customary for sales of such properties; (iii) there is an active program to locate a buyer; (iv) the sale of the property is probable and transfer of the asset is expected to be completed within one year; (v) the property is being actively marketed for sale; and (vi) actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn.

Upon the determination to classify a property as held for sale, the Company ceases depreciation and amortization on the real estate property held for sale, as well as the amortization of any related intangible assets. Such properties are recorded at the lesser of the carrying value or estimated fair value less estimated costs to sell.

Impairments

Impairments

The Company continually monitors events and changes in circumstances that could indicate that the carrying amounts of its real estate assets may not be recoverable. When indicators of potential impairment suggest that the carrying value of real estate assets may not be recoverable, the Company assesses the recoverability of the asset group by estimating whether the Company will recover the carrying value of the asset group through its undiscounted future cash flows, including eventual disposition. Based on this analysis, if the Company does not believe that it will be able to recover the carrying value of the asset group, an impairment charge will be recorded to the extent that the carrying value exceeds the estimated fair value of the asset group.

When developing estimates of expected future cash flows, the Company makes certain assumptions regarding future market rental rates subsequent to the expiration of current lease arrangements, property operating expenses, terminal capitalization and discount rates, probability weighting of potential uses of the property, sale prices of comparable properties, required tenant improvements and the number of years the property will be held for investment. The use of alternative assumptions in the future cash flow analysis could result in a different determination of the property’s future cash flows and a different conclusion regarding the existence of an impairment, the extent of such loss, if any, as well as the carrying value of the real estate assets.

In addition, we determine fair value by using a direct capitalization method, a discounted cash flow method using the assumptions noted above, or by utilizing comparable market information based on the view of a market participant. The use of alternative assumptions in these approaches could result in a different determination of the property’s estimated fair value and a different conclusion regarding the existence of an impairment, the extent of such loss, if any, as well as the carrying value of the real estate assets.

The Company accounts for goodwill in accordance with Accounting Standards Codification, or ASC, 350, Intangibles - Goodwill and Other, and allocates its goodwill to its reporting units, which have been determined to be at the individual property level. Goodwill has an indefinite life and is not amortized.

The Company evaluates goodwill for impairment at least annually, as of the last day of each year, or upon the occurrence of a triggering event. A triggering event is an event or circumstance that would more-likely-than-not indicate that the fair value of a reporting unit is below its carrying value.

The Company has the option to perform a qualitative assessment to determine if a quantitative impairment test is necessary. Under a qualitative assessment, the impairment analysis for goodwill represents an evaluation of whether it is more-likely-than-not the reporting unit's fair value is less than its carrying value, including goodwill. If a qualitative analysis indicates that it is more-likely-than-not that the estimated carrying value of a reporting unit, including goodwill, exceeds its fair value, the Company performs the quantitative analysis. The quantitative analysis consists of estimating the fair value of each reporting unit using discounted projected future cash flows and comparing those estimated fair values with the carrying values, which include the allocated goodwill. If the estimated fair value is less than the carrying value, the Company would then recognize a goodwill impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value, not to exceed the total amount of goodwill allocated to that reporting unit.

Deferred Financing Costs

Deferred Financing Costs

Deferred financing costs are loan fees, legal fees and other third-party costs associated with obtaining and further modifying financing. These costs are amortized over the terms of the respective financing agreements using the effective interest method. Deferred financing costs related to the term loan portion of the credit facility are recorded as a reduction of the related debt on the accompanying consolidated balance sheets. Deferred financing costs related to the revolving line of credit are recorded in other assets, net, in the accompanying consolidated balance sheets.

Fair Value

Fair Value

ASC 820, Fair Value Measurements and Disclosures, or ASC 820, defines fair value, establishes a framework for measuring fair value in accordance with GAAP and expands disclosures about fair value measurements. ASC 820 emphasizes that fair value is intended to be a market-based measurement, as opposed to a transaction-specific measurement.

Fair value is defined by ASC 820 as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Depending on the nature of the asset or liability, various techniques and assumptions can be used to estimate the fair value. Assets and liabilities are measured using inputs from three levels of the fair value hierarchy, as follows:

Level 1—Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. An active market is defined as a market in which transactions for the assets or liabilities occur with sufficient frequency and volume to provide pricing information on an ongoing basis.

Level 2—Inputs other than quoted prices for similar assets and liabilities in active markets that are observable for the asset or liability (i.e., interest rates, yield curves, etc.), and inputs that are derived principally from or corroborated by observable market data correlation or other means (market corroborated inputs).

Level 3—Unobservable inputs, only used to the extent that observable inputs are not available, reflect the Company’s assumptions about the pricing of an asset or liability.

Revenue Recognition and Tenant Receivables

Revenue Recognition and Tenant Receivables

The majority of the Company's revenue is derived from rental revenue, which is accounted for in accordance with ASC 842, Leases, or ASC 842. Under ASC 842, rental revenue is recognized on a straight-line basis over the term of the related lease (including rent holidays). For lease arrangements where it is not probable that the Company will collect all or substantially all of the remaining lease payments under the term of the lease, rental revenue is limited to the lesser of the rental revenue that would be recognized on a straight-line basis or the lease payments that have been collected from the lessee. Differences between rental revenue recognized and amounts contractually due under the lease agreements are credited or charged to straight-line rent receivable. Tenant reimbursements, which are comprised of additional amounts recoverable from tenants for common area maintenance expenses and certain other recoverable expenses, are recognized when the services are provided and the performance obligations are satisfied.

Share Repurchase Program

Share Repurchase Program

The Company’s Amended and Restated Share Repurchase Program, or the SRP, allows for repurchases of shares of the Company’s common stock upon meeting certain criteria. The SRP provides that all repurchases during any calendar year, including those redeemable upon death or a "Qualifying Disability" (as defined in the Company's SRP) of a stockholder, be limited to those that can be funded with equivalent proceeds raised from the DRIP during the prior calendar year and other operating funds, if any, as the Board, in its sole discretion, may reserve for this purpose.

Repurchases of shares of the Company’s common stock are at the sole discretion of the Board, provided, however, that the Company limits the number of shares repurchased during any calendar year to 5.0% of the total number of shares of common stock outstanding as of December 31st of the previous calendar year. The SRP is subject to terms and limitations, including, but not limited to, quarterly share limitations, an annual 5.0% share limitation and DRIP funding limitations and any amendments to the plan. In addition, the Board, in its sole discretion, may suspend (in whole or in part) the SRP at any time, and may amend, reduce, terminate or otherwise change the SRP upon 30 days' prior notice to the Company’s stockholders for any reason it deems appropriate.

The Company will currently only repurchase shares due to death and involuntary exigent circumstances in accordance with the SRP, subject in each case to the terms and limitations of the SRP. Under the SRP, the Company may waive certain of the terms and requirements of the SRP in the event of the death of a stockholder who is a natural person, including shares held through an Individual Retirement Account or other retirement or profit-sharing plan, and certain trusts meeting the requirements of the SRP. The Company may also waive certain of the terms and requirements of the SRP in the event of an involuntary exigent circumstance, as determined by the Company or any of the executive officers thereof, in its or their sole discretion.

Distribution Policy

Distribution Policy

In order to maintain its status as a REIT, the Company is required to make distributions each taxable year equal to at least 90% of its REIT taxable income, computed without regard to the dividends paid deduction and excluding capital gains. To the extent funds are available, the Company intends to continue to pay regular distributions to stockholders. Distributions are paid to stockholders of record as of the applicable record dates. Distributions to stockholders are determined by the Board and are dependent upon a number of factors, including funds available for the payment of distributions, financial condition, the timing

of property acquisitions, capital expenditure requirements, and annual distribution requirements in order to maintain the Company’s status as a REIT.

Stock-based Compensation

Stock-based Compensation

On March 6, 2020, the Board approved the Amended and Restated 2014 Restricted Share Plan, or the A&R Incentive Plan, pursuant to which the Company has the authority and power to grant awards of restricted shares of its Class A common stock to its directors, officers and employees. The Company accounts for its stock awards in accordance with ASC 718-10, Compensation—Stock Compensation. ASC 718-10 requires that compensation cost for all stock awards be calculated and amortized over the service period (generally equal to the vesting period). For performance-based awards, compensation costs are recognized over the service period if it is probable that the performance condition will be satisfied, with changes of the assessment at each reporting period and recording the effect of the change in the compensation cost as a cumulative catch-up adjustment. The compensation costs for restricted stock are recognized based on the fair value of the restricted stock awards at grant date. Forfeitures are accounted for as they occur.

Earnings Per Share

Earnings Per ShareThe Company calculates basic earnings per share by dividing net (loss) income attributable to common stockholders for the period by the weighted average shares of its common stock outstanding for that period. Diluted earnings per share is computed based on the weighted average number of shares outstanding and all potentially dilutive securities. Shares of non-vested restricted common stock and Performance DSUs give rise to potentially dilutive shares of common stock.

Reportable Segments

Reportable SegmentsASC 280, Segment Reporting, establishes standards for reporting financial and descriptive information about an entity’s reportable segments. As of December 31, 2022 and December 31, 2021, 100% of the Company's consolidated revenues from continuing operations were generated from real estate investments in healthcare properties. The Company’s chief operating decision maker evaluates operating performance of healthcare properties on an individual property level, which are aggregated into one reportable segment due to their similar economic characteristics.

Derivative Instruments and Hedging Activities

Derivative Instruments and Hedging Activities

As required by ASC 815, Derivatives and Hedging, or ASC 815, the Company records all derivative instruments at fair value as assets and liabilities on its consolidated balance sheets. The accounting for changes in the fair value of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship and further, on the type of hedging relationship. For those derivative instruments that are designated and qualify as hedging instruments, a company must designate the hedging instrument, based upon the exposure being hedged, as a fair value hedge, cash flow hedge or a hedge of a net investment in a foreign operation.

In accordance with the fair value measurement guidance in Accounting Standards Update, or ASU, 2011-04, Fair Value Measurement, the Company made an accounting policy election to measure the credit risk of its derivative financial instruments that are subject to master netting agreements on a net basis by counterparty portfolio.

The Company is exposed to variability in expected future cash flows that are attributable to interest rate changes in the normal course of business. The Company’s primary strategy in entering into derivative contracts is to add stability to future cash flows by managing its exposure to interest rate fluctuations. The Company utilizes derivative instruments, including interest rate swaps, to effectively convert some of its variable rate debt to fixed rate debt. The Company does not enter into derivative instruments for speculative purposes.

In accordance with ASC 815, the Company designates interest rate swap contracts as cash flow hedges of floating-rate borrowings. For derivative instruments that are designated and qualify as cash flow hedges, the gains or losses on the derivative instruments are reported as other comprehensive income (loss) - unrealized gain (loss) on interest rate swaps, net in the consolidated statements of comprehensive income and are reclassified into earnings in the same line item associated with the forecasted transaction in the same period during which the hedged transactions affect earnings.

Income Taxes

Income Taxes

The Company currently qualifies and is taxed as a REIT under Sections 856 through 860 of the Code. Accordingly, it will generally not be subject to corporate U.S. federal or state income tax to the extent that it makes qualifying distributions to stockholders, and provided it satisfies, on a continuing basis, through actual investment and operating results, the REIT requirements, including certain asset, income, distribution and stock ownership tests. If the Company fails to qualify as a REIT, it would be subject to U.S. federal, state and local income taxes and may be precluded from qualifying as a REIT for the subsequent four taxable years following the year in which it lost its REIT qualification, unless the Internal Revenue Service grants the Company relief under certain statutory provisions. Accordingly, failure to qualify as a REIT could have a material adverse impact on the results of operations and amounts available for distribution to stockholders.

The dividends paid deduction of a REIT for qualifying dividends paid to its stockholders is computed using the Company’s taxable income as opposed to net income reported in the consolidated financial statements. Taxable income, generally, will differ from net income reported in the consolidated financial statements because the determination of taxable income is based on tax provisions and not financial accounting principles.

The Company has concluded that there was no impact related to uncertain tax positions from results of operations of the Company for the years ended December 31, 2022, 2021 and 2020. The earliest tax year currently subject to examination is 2019.

Reclassifications

Reclassifications

During the current year, the Company has determined that certain expenses, previously presented within general and administrative expenses, are more closely related to the operations of its properties. As a result, these amounts have been reclassified to rental expenses for all prior periods to conform to the current period presentation.

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Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2022

Accounting Policies [Abstract]

Reconciliation of Cash, Cash Equivalents and Restricted Cash

The following table presents a reconciliation of the beginning of year and end of year cash, cash equivalents and restricted cash reported within the consolidated balance sheets to the totals shown in the consolidated statements of cash flows (amounts in thousands):

	Year Ended December 31,
	2022		2021		2020
Beginning of year:
Cash and cash equivalents	$	32,359	$	53,174	$	69,342
Restricted cash	521		14,735		10,888
Cash, cash equivalents and restricted cash	$	32,880	$	67,909	$	80,230
End of year:
Cash and cash equivalents	$	12,917	$	32,359	$	53,174
Restricted cash	166		521		14,735
Cash, cash equivalents and restricted cash	$	13,083	$	32,880	$	67,909

Schedule of Estimated Useful Lives of Assets by Class

The Company anticipates the estimated useful lives of its assets by class as follows:

Buildings and improvements	15 – 40 years
Tenant improvements	Shorter of lease term or expected useful life
Furniture, fixtures, and equipment	3 – 10 years

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Real Estate Investments (Tables)

12 Months Ended

Dec. 31, 2022

Real Estate [Abstract]

Schedule of Consideration Transferred for Properties Acquired

The following table summarizes the consideration transferred for the 2022 Acquisitions during the year ended December 31, 2022:

Property Description	Date Acquired	Ownership Percentage	Consideration Transferred (amount in thousands)
Yukon Healthcare Facility	03/10/2022	100%	$	19,554
Pleasant Hills Healthcare Facility	05/12/2022	100%	14,303
Prosser Healthcare Facilities (1)	05/20/2022	100%	8,593
Tampa Healthcare Facility II	07/20/2022	100%	51,259
Escondido Healthcare Facility	07/21/2022	100%	63,485
Total			$	157,194

(1)     The Prosser Healthcare Facilities consist of three healthcare properties.

Schedule of Allocation of Acquisitions

The following table summarizes the Company's purchase price allocation of the 2022 Acquisitions during the year ended December 31, 2022 (amounts in thousands):

	Total
Land	$	2,646
Building and improvements	136,938
Tenant improvements	4,840
In-place leases	12,779
Above-market leases	454
Total assets acquired	157,657
Below-market leases	(463)
Net assets acquired	$	157,194

Schedule of Goodwill

The following table summarizes the rollforward of goodwill for the years ended December 31, 2022 and 2021 (amounts in thousands):

	Year Ended December 31,
	2022		2021
Balance at beginning of year	$	23,284	$	23,955
Impairment losses	(1,574)		(671)
Balance at end of year	$	21,710	$	23,284

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Held for Sale and Discontinued Operations (Tables)

12 Months Ended

Dec. 31, 2022

Discontinued Operations and Disposal Groups [Abstract]

Schedule of Major Classes of Assets and Liabilities Classified as Held for Sale and Operations Reflected in Discontinued Operations

The following table presents the major classes of the assets and liabilities held for sale as presented separately in the condensed consolidated balance sheet as of December 31, 2021 (amounts in thousands):

	December 31, 2021
Assets:
Real estate:
Land	$	22,241
Total real estate, net	22,241
Other assets, net	329
Assets held for sale	$	22,570
Liabilities:
Accounts payable and other liabilities	698
Liabilities held for sale	$	698

The operations reflected in income from discontinued operations (which consisted solely of the Company's former data center segment) on the consolidated statements of comprehensive income for the years ended December 31, 2021 and 2020, were as follows (amounts in thousands):

	Year Ended December 31,
	2021		2020
Revenue:
Rental revenue	$	57,903	$	110,755
Lease termination revenue	7,075		—
Total revenue	64,978		110,755
Expenses:
Rental expenses	15,737		28,346
Asset management fees	—		5,310
Depreciation and amortization	11,759		35,634
Total expenses	27,496		69,290
Interest and other expense, net (1)	31,839		13,626
Income from discontinued operations	5,643		27,839
Gain on real estate dispositions	395,801		—
Net income from discontinued operations attributable to common stockholders	$	401,444	$	27,839

(1)    Interest expense attributable to discontinued operations for the years ended December 31, 2021 and December 31, 2020 was $31,856,000 and $13,741,000, respectively, which related to notes payable on certain data center properties. On July 22, 2021, in connection with the Data Center Sale, the Company paid off all data center and healthcare related notes payable, with an outstanding principal balance of $450,806,000 at the time of repayment and incurred approximately $23,738,000 of debt extinguishment costs related to the data center properties.

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Acquired Intangible Assets, Net (Tables)

12 Months Ended

Dec. 31, 2022

Finite-Lived Intangible Assets, Net [Abstract]

Schedule of Acquired Intangible Assets, Net

Acquired intangible assets, net, consisted of the following as of December 31, 2022 and 2021 (amounts in thousands, except weighted average remaining life amounts):

	December 31, 2022		December 31, 2021
In-place leases, net of accumulated amortization of $83,788 and $66,579, respectively (with a weighted average remaining life of 8.9 years and 9.5 years, respectively)	$	155,365	$	168,012
Above-market leases, net of accumulated amortization of $6,451 and $4,488, respectively (with a weighted average remaining life of 7.9 years and 8.8 years, respectively)	12,118		13,627
	$	167,483	$	181,639

Schedule of Estimated Future Amortization Expense of Acquired Intangible Assets

Estimated amortization expense on the acquired intangible assets as of December 31, 2022, for each of the next five years ending December 31 and thereafter, is as follows (amounts in thousands):

Year	Amount
2023	$	22,221
2024	21,195
2025	19,204
2026	17,503
2027	15,926
Thereafter	71,434
	$	167,483

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Acquired Intangible Liabilities, Net (Tables)

12 Months Ended

Dec. 31, 2022

Intangible Lease Liabilities, Net [Abstract]

Schedule of Acquired Intangible Liabilities, Net

Acquired intangible liabilities, net, consisted of the following as of December 31, 2022 and 2021 (amounts in thousands, except weighted average remaining life amounts):

	December 31, 2022		December 31, 2021
Below-market leases, net of accumulated amortization of $5,923 and $4,444, respectively (with a weighted average remaining life of 8.4 years and 9.3 years, respectively)	$	11,946	$	12,962

Schedule of Estimated Future Amortization of Acquired Intangible Liabilities

Estimated amortization of the acquired intangible liabilities as of December 31, 2022, for each of the next five years ending December 31 and thereafter, are as follows (amounts in thousands):

Year	Amount
2023	$	1,494
2024	1,494
2025	1,494
2026	1,475
2027	1,450
Thereafter	4,539
	$	11,946

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Leases (Tables)

12 Months Ended

Dec. 31, 2022

Leases [Abstract]

Schedule of Future Minimum Rent to Lessor from Operating Leases

Future rent to be received from the Company's investments in real estate assets under the terms of non-cancellable operating leases in effect as of December 31, 2022, for each of the next five years ending December 31 and thereafter, are as follows (amounts in thousands):

Year	Amount
2023	$	172,907
2024	174,299
2025	170,346
2026	163,441
2027	159,797
Thereafter	938,204
Total	$	1,778,994

Schedule of Future Minimum Rent from Lessee for Operating Leases

The future rent payments, discounted by the Company's IBRs, under non-cancellable leases in effect as of December 31, 2022, for each of the next five years ending December 31 and thereafter, are as follows (amounts in thousands):

Year	Operating
2023	$	2,675
2024	2,746
2025	2,768
2026	2,715
2027	2,681
Thereafter	107,456
Total undiscounted rental payments	121,041
Less imputed interest	(79,487)
Total lease liabilities	$	41,554
Weighted average IBR	5.5		%
Weighted average remaining lease term	37.5 years

Schedule of Lease Cost

The following table provides details of the Company's total lease costs for the years ended December 31, 2022, 2021 and 2020 (amounts in thousands):

		Year Ended December 31,
	Location in Consolidated Statements of Comprehensive Income	2022		2021		2020
Operating lease costs:
Ground lease costs (1)	Rental expenses	$	2,246	$	1,846	$	1,741
Ground lease costs (2)	Income from discontinued operations	—		414		880
Corporate operating lease costs	General and administrative expenses	741		1,129		264
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases		$	531	$	1,067	$	270

(1)The Company receives reimbursements from tenants for certain operating ground leases, which are recorded as rental revenue in the accompanying consolidated statements of comprehensive income.

(2)Amount relates to lease costs attributable to operating ground leases related to data center properties disposed of in the Data Center Sale on July 22, 2021.

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Other Assets (Tables)

12 Months Ended

Dec. 31, 2022

Other Assets [Abstract]

Schedule of Other Assets

Other assets consisted of the following as of December 31, 2022 and 2021 (amounts in thousands):

	December 31, 2022		December 31, 2021
Deferred financing costs, related to the revolver portion of the credit facility, net of accumulated amortization of $889 and $8,332, respectively	$	3,178	$	482
Leasing commissions, net of accumulated amortization of $167 and $121, respectively	775		780
Restricted cash	166		521
Tenant receivables	1,736		1,851
Straight-line rent receivable	62,457		55,725
Prepaid and other assets	3,865		4,835
Derivative assets	27,990		2,171
	$	100,167	$	66,365

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Accounts Payable and Other Liabilities (Tables)

12 Months Ended

Dec. 31, 2022

Payables and Accruals [Abstract]

Schedule of Accounts Payable and Other Liabilities

Accounts payable and other liabilities consisted of the following as of December 31, 2022 and 2021 (amounts in thousands):

	December 31, 2022		December 31, 2021
Accounts payable and accrued expenses	$	5,387	$	9,409
Accrued interest expense	1,941		1,626
Accrued property taxes	2,421		2,913
Accrued personnel costs	3,940		4,198
Distribution and servicing fees	—		182
Distributions payable to stockholders	7,719		7,355
Performance DSUs distributions payable	573		394
Tenant deposits	877		802
Deferred rental income	7,761		7,100
Derivative liabilities	—		5,618
	$	30,619	$	39,597

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Credit Facility (Tables)

12 Months Ended

Dec. 31, 2022

Debt Disclosure [Abstract]

Schedule of Credit Facility

The Company's outstanding credit facility as of December 31, 2022 and 2021 consisted of the following (amounts in thousands):

	Weighted Average Contractual Rate	December 31, 2022		December 31, 2021
Variable rate revolving line of credit	5.47%	$	8,000	$	—
Variable rate term loans fixed through interest rate swaps	2.95%	485,000		400,000
Variable rate term loans	5.47%	90,000		100,000
Total credit facility, principal amount outstanding	3.37%	583,000		500,000
Unamortized deferred financing costs related to the term loan credit facility		(2,412)		(3,226)
Total credit facility, net of deferred financing costs		$	580,588	$	496,774

Schedule of Future Principal Payments Due on Debt

The principal payments due on the Unsecured Credit Facility as of December 31, 2022, for each of the next five years ending December 31 and thereafter, are as follows (amounts in thousands):

Year	Amount
2023	$	—
2024	300,000
2025	—
2026	8,000
2027	—
Thereafter	275,000
	$	583,000

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Fair Value (Tables)

12 Months Ended

Dec. 31, 2022

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following tables show the fair value of the Company’s financial assets and liabilities that are required to be measured at fair value on a recurring basis as of December 31, 2022 and 2021 (amounts in thousands):

	December 31, 2022
	Fair Value Hierarchy
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Fair Value
Assets:
Derivative assets	$	—	$	27,990	$	—	$	27,990
Total assets at fair value	$	—	$	27,990	$	—	$	27,990

	December 31, 2021
	Fair Value Hierarchy
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Fair Value
Assets:
Derivative assets	$	—	$	2,171	$	—	$	2,171
Total assets at fair value	$	—	$	2,171	$	—	$	2,171
Liabilities:
Derivative liabilities	$	—	$	5,618	$	—	$	5,618
Total liabilities at fair value	$	—	$	5,618	$	—	$	5,618

Schedule of Fair Value, Real Estate Assets Measured on Non-Recurring Basis

The following table shows the fair value of the Company's real estate assets, including acquired intangible assets measured at fair value on a non-recurring basis as of December 31, 2022 (amounts in thousands):

	December 31, 2022
	Fair Value Hierarchy
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Fair Value		Total Losses (1)
Real estate assets	$	—	$	—	$	13,898	$	13,898	$	51,769

(1)Amount includes impairment of in-place lease intangible assets in the amount of approximately $4,345,000.

Summary of Significant Unobservable Inputs

The following table sets forth quantitative information about the significant unobservable inputs of the Company’s Level 3 real estate recorded as of December 31, 2022:

Significant Unobservable Inputs	December 31, 2022
Comparable sale price per square foot	$5.01	–	$6.56

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Derivative Instruments and Hedging Activities (Tables)

12 Months Ended

Dec. 31, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of the Notional Amount and Fair Value of Derivative Instruments

The following table summarizes the notional amount and fair value of the Company’s derivative instruments (amounts in thousands):

Derivatives Designated as Hedging Instruments	Balance Sheet Location	Effective Dates (2), (3)	Maturity Dates (2)	December 31, 2022						December 31, 2021
				Outstanding Notional Amount (2)		Fair Value of				Outstanding Notional Amount		Fair Value of
						Assets		(Liabilities)				Assets		(Liabilities)
Interest rate swaps	(1)	05/01/2022 to 05/01/2023	04/27/2023 to 01/31/2028	$	485,000	$	27,990	$	—	$	400,000	$	2,171	$	(5,618)

(1)     Derivative assets and liabilities are reported in the consolidated balance sheets as other assets and accounts payable and other liabilities, respectively.

(2)    In May 2022, the Company entered into bilateral agreements with its swap counterparties to transition all of its interest rate swap agreements to SOFR. The Company made various ASC 848 elections related to changes in critical terms of the hedging relationships due to reference rate reform to not result in a de-designation of these hedging relationships. As of June 30, 2022, all of the Company's interest rate swap agreements were indexed to SOFR.

Schedule of Income and Losses Recognized on Derivative Instruments

The table below summarizes the amount of income and losses recognized on the interest rate derivatives designated as cash flow hedges for the years ended December 31, 2022, 2021 and 2020 (amounts in thousands):

Derivatives in Cash Flow Hedging Relationships	Amount of Income (Loss) Recognized in Other Comprehensive Income on Derivatives		Location of Loss Reclassified From Accumulated Other Comprehensive Income (Loss) to Net (Loss) Income	Amount of Loss Reclassified From Accumulated Other Comprehensive Income (Loss) to Net (Loss) Income		Total Amount of Line Item in Consolidated Statements of Comprehensive Income
Year Ended December 31, 2022
Interest rate swaps - continuing operations	$	32,317	Interest and other expense, net	$	(520)	$	23,772
Year Ended December 31, 2021
Interest rate swaps - continuing operations	$	5,956	Interest and other expense, net	$	(8,031)	$	34,515
Interest rate swaps - discontinued operations	(37)		Income from discontinued operations	(1,647)		401,444
Total	$	5,919		$	(9,678)
Year Ended December 31, 2020
Interest rate swaps - continuing operations	$	(19,676)	Interest and other expense, net	$	(6,263)	$	42,025
Interest rate swaps - discontinued operations	(3,907)		Income from discontinued operations	(1,580)		27,839
Total	$	(23,583)		$	(7,843)

Schedule of Offsetting of Derivative Assets

The following tables present the effect on the Company’s financial position had the Company made the election to offset its derivative positions as of December 31, 2022 and December 31, 2021 (amounts in thousands):

Offsetting of Derivative Assets
							Gross Amounts Not Offset in the Balance Sheet
	Gross Amounts of Recognized Assets		Gross Amounts Offset in the Balance Sheet		Net Amounts of Assets Presented in the Balance Sheet		Financial Instruments Collateral		Cash Collateral		Net Amount
December 31, 2022	$	27,990	$	—	$	27,990	$	—	$	—	$	27,990
December 31, 2021	$	2,171	$	—	$	2,171	$	(1,023)	$	—	$	1,148

Schedule of Offsetting of Derivative Liabilities

Offsetting of Derivative Liabilities
							Gross Amounts Not Offset in the Balance Sheet
	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Balance Sheet		Net Amounts of Liabilities Presented in the Balance Sheet		Financial Instruments Collateral		Cash Collateral		Net Amount
December 31, 2022	$	—	$	—	$	—	$	—	$	—	$	—
December 31, 2021	$	5,618	$	—	$	5,618	$	(1,023)	$	—	$	4,595

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Stockholders' Equity (Tables)

12 Months Ended

Dec. 31, 2022

Stockholders' Equity Note [Abstract]

Schedule of Amounts Recognized in Accumulated Other Comprehensive Income (Loss)

The following table presents a rollforward of amounts recognized in accumulated other comprehensive income (loss) by component for the year ended December 31, 2022, 2021 and 2020 (amounts in thousands):

	Unrealized (Loss) Income on Derivative Instruments
Balance as of December 31, 2019	$	(4,704)
Other comprehensive loss before reclassification	(23,583)
Amount of loss reclassified from accumulated other comprehensive loss to net income	7,843
Other comprehensive loss	(15,740)
Balance as of December 31, 2020	(20,444)
Other comprehensive income before reclassification	5,919
Amount of loss reclassified from accumulated other comprehensive loss to net income	9,678
Other comprehensive income	15,597
Balance as of December 31, 2021	(4,847)
Other comprehensive income before reclassification	32,317
Amount of loss reclassified from accumulated other comprehensive (loss) income to net (loss) income	520
Other comprehensive income	32,837
Balance as of December 31, 2022	$	27,990

Schedule of Reclassifications Out of Accumulated Other Comprehensive Income (Loss)

The following table presents reclassifications out of accumulated other comprehensive income (loss) for the year ended December 31, 2022, 2021 and 2020 (amounts in thousands):

Details about Accumulated Other Comprehensive Income (Loss) Components	Loss Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) to Net (Loss) Income						Affected Line Items in the Consolidated Statements of Comprehensive Income
	Year Ended December 31,
	2022		2021		2020
Interest rate swap contracts - continuing operations	$	520	$	8,031	$	6,263	Interest and other expense, net
Interest rate swap contracts - discontinued operations	—		1,647		$	1,580	Income from discontinued operations
Interest rate swap contracts	$	520	$	9,678	$	7,843

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Stock-based Compensation (Tables)

12 Months Ended

Dec. 31, 2022

Share-Based Payment Arrangement [Abstract]

Schedule of Nonvested Shares of Restricted Common Stock Activity

A summary of the status of the nonvested shares of restricted Class A common stock and Performance DSUs as of December 31, 2021 and the changes for the year ended December 31, 2022 is presented below:

Restricted Stock and and Performance DSUs	Shares
Nonvested restricted Class A common stock and Performance DSUs at December 31, 2021	974,558
Vested Class A common stock	(167,500)
Vested Performance DSUs	(5,387)
Forfeited restricted Class A common stock	(16,344)
Forfeited Performance DSUs	(15,438)
Granted restricted Class A common stock	335,854
Granted Performance DSUs	317,947
Nonvested restricted Class A common stock and Performance DSUs at December 31, 2022	1,423,690

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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Schedule of Characterization of Distributions Paid to Stockholders

As a REIT, the Company generally will not be subject to U.S. federal income tax on taxable income that it distributes to the stockholders. For U.S. federal income tax purposes, distributions to stockholders are characterized as either ordinary dividends, capital gain distributions, or nontaxable distributions. Nontaxable distributions will reduce U.S. stockholders’ respective bases in their shares. The following table shows the character of distributions the Company paid on a percentage basis during the years ended December 31, 2022, 2021 and 2020:

	Year Ended December 31,
Character of Distributions (1):	2022		2021		2020
Ordinary dividends	40.94	%	27.91	%	—	%
Capital gain distributions	—	%	—	%	—	%
Nontaxable distributions	59.06	%	72.09	%	100.00	%
Total	100.00	%	100.00	%	100.00	%
	Year Ended December 31,
Character of Special Distribution (1):	2022		2021		2020
Ordinary dividends	—	%	12.39	%	—	%
Capital gain distributions	—	%	86.66	%	—	%
Nontaxable distributions	—	%	0.95	%	—	%
Total	—	%	100.00	%	—	%

(1)Attributable to Class A shares, Class I shares, Class T shares and Class T2 shares of common stock.

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Selected Quarterly Financial Data (Unaudited) (Tables)

12 Months Ended

Dec. 31, 2022

Quarterly Financial Information Disclosure [Abstract]

Schedule of Selected Quarterly Financial Data (Unaudited)

Presented in the following table is a summary of the unaudited quarterly financial information for the years ended December 31, 2022 and 2021. The Company believes that all necessary adjustments, consisting only of normal recurring adjustments, have been included in the amounts stated below to present fairly, and in accordance with GAAP, the selected quarterly information (amounts in thousands, except shares and per share data):

	2022
	Fourth Quarter		Third Quarter		Second Quarter		First Quarter
Total revenue	$	43,905	$	46,881	$	44,918	$	44,282
Total expenses	(72,837)		(27,991)		(28,568)		(35,256)
Gain on real estate disposition	—		—		—		460
Interest and other expense, net	(5,830)		(5,498)		(4,329)		(8,115)
(Loss) income from operations	(34,762)		13,392		12,021		1,371
Net (loss) income attributable to common stockholders	$	(34,762)	$	13,392	$	12,021	$	1,371
Net (loss) income per common share attributable to common stockholders:
Basic:
Net (loss) income attributable to common stockholders	$	(0.15)	$	0.06	$	0.05	$	0.01
Diluted:
Net (loss) income attributable to common stockholders	$	(0.15)	$	0.06	$	0.05	$	0.01
Weighted average number of common shares outstanding:
Basic	226,112,737		225,638,485		225,008,452		224,499,307
Diluted	226,112,737		226,957,015		226,362,977		225,865,366
	2021
	Fourth Quarter		Third Quarter		Second Quarter		First Quarter
Total revenue	$	43,606	$	43,063	$	43,747	$	42,422
Total expenses	(27,138)		(36,872)		(34,462)		(38,724)
Gain on real estate disposition	89		—		—		—
Interest and other expense, net	(4,480)		(11,737)		(9,534)		(8,764)
Income (loss) from continuing operations	12,077		(5,546)		(249)		(5,066)
Income from discontinued operations	—		377,191		16,305		7,948
Net income attributable to common stockholders	$	12,077	$	371,645	$	16,056	$	2,882
Net income (loss) per common share attributable to common stockholders:
Basic:
Continuing operations	$	0.05	$	(0.03)	$	—	$	(0.02)
Discontinued operations	—		1.69		0.07		0.03
Net income attributable to common stockholders	$	0.05	$	1.66	$	0.07	$	0.01
Diluted:
Continuing operations	$	0.05	$	(0.03)	$	—	$	(0.02)
Discontinued operations	—		1.69		0.07		0.03
Net income attributable to common stockholders	$	0.05	$	1.66	$	0.07	$	0.01
Weighted average number of common shares outstanding:
Basic	224,054,323		223,661,774		223,082,912		222,481,179
Diluted	225,031,906		223,661,774		223,082,912		222,481,179

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Subsequent Events (Tables)

12 Months Ended

Dec. 31, 2022

Subsequent Events [Abstract]

Schedule of Subsequent Events

The following table summarizes the Company's distributions paid to stockholders on January 6, 2023, for the period from December 1, 2022 through December 31, 2022 (amounts in thousands):

Payment Date	Common Stock	Cash		DRIP		Total Distribution
January 6, 2023	Class A	$	4,506	$	1,249	$	5,755
January 6, 2023	Class I	338		231		569
January 6, 2023	Class T	748		647		1,395
		$	5,592	$	2,127	$	7,719

The following table summarizes the Company's distributions paid to stockholders on February 6, 2023, for the period from January 1, 2023 through January 31, 2023 (amounts in thousands):

Payment Date	Common Stock	Cash		DRIP		Total Distribution
February 6, 2023	Class A	$	4,522	$	1,245	$	5,767
February 6, 2023	Class I	339		231		570
February 6, 2023	Class T	748		649		1,397
		$	5,609	$	2,125	$	7,734

The following table summarizes the Company's distributions paid to stockholders on March 6, 2023, for the period from February 1, 2023 through February 28, 2023 (amounts in thousands):

Payment Date	Common Stock	Cash		DRIP		Total Distribution
March 6, 2023	Class A	$	4,081	$	1,123	$	5,204
March 6, 2023	Class I	307		209		516
March 6, 2023	Class T	675		587		1,262
		$	5,063	$	1,919	$	6,982

Distributions Authorized

The following tables summarize the daily distributions approved and authorized by the Board subsequent to December 31, 2022:

Authorization Date (1)	Common Stock	Daily Distribution Rate (1)		Annualized Distribution Per Share
January 18, 2023	Class A	$	0.00109589	$	0.40
January 18, 2023	Class I	$	0.00109589	$	0.40
January 18, 2023	Class T	$	0.00109589	$	0.40

Authorization Date (2)	Common Stock	Daily Distribution Rate (2)		Annualized Distribution Per Share
February 17, 2023	Class A	$	0.00109589	$	0.40
February 17, 2023	Class I	$	0.00109589	$	0.40
February 17, 2023	Class T	$	0.00109589	$	0.40

Authorization Date (3)	Common Stock	Daily Distribution Rate (2)		Annualized Distribution Per Share
March 15, 2023	Class A	$	0.00109589	$	0.40
March 15, 2023	Class I	$	0.00109589	$	0.40
March 15, 2023	Class T	$	0.00109589	$	0.40

(1)Distributions approved and authorized to stockholders of record as of the close of business on each day of the period commencing on February 1, 2023 and ending on February 28, 2023. The distributions are calculated based on 365 days in the calendar year. The distributions declared for each record date in February 2023 were paid in March 2023. The distributions are payable to stockholders from legally available funds therefor.

(2)Distributions approved and authorized to stockholders of record as of the close of business on each day of the period commencing on March 1, 2023 and ending on March 31, 2023. The distributions will be calculated based on 365 days in the calendar year. The distributions declared for each record date in March 2023 will be paid in April 2023. The distributions will be payable to stockholders from legally available funds therefor.

(3)Distributions approved and authorized to stockholders of record as of the close of business on each day of the period commencing on April 1, 2023 and ending on April 30, 2023. The distributions will be calculated based on 365 days in the calendar year. The distributions declared for each record date in April 2023 will be paid in May 2023. The distributions will be payable to stockholders from legally available funds therefor.

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Organization and Business Operations (Details) $ / shares in Units, $ in Thousands			12 Months Ended
	Jul. 30, 2021 USD ($)	Jul. 22, 2021 USD ($) $ / shares	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)	May 19, 2021 property
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Proceeds from real estate disposition			$ 22,822	$ 1,308,009	$ 28,542
Special cash dividend (in dollars per share) | $ / shares		$ 1.75
Special cash distributions	$ 392,685
Operating Partnership
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Ownership interest (as a percentage)			100.00%
Discontinued Operations, Held-for-sale | Data Centers
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Number of real estate properties owned | property						29
Discontinued Operations, Disposed of by Sale | Data Centers
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Aggregate sales price		$ 1,320,000
Proceeds from real estate disposition		$ 1,295,367

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Summary of Significant Accounting Policies (Share Repurchase Program) (Details)	12 Months Ended
	Dec. 31, 2022
Accounting Policies [Abstract]
Maximum number of shares available for repurchase during any calendar year, as percentage of common stock outstanding at end of prior year	5.00%
Period of notice required for changes to share repurchase program	30 days

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Summary of Significant Accounting Policies (Reportable Segments) (Details) - segment	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Summary of Significant Accounting Policies [Line Items]
Number of reportable business segments	1
Revenue | Product Concentration Risk | Healthcare
Summary of Significant Accounting Policies [Line Items]
Concentration risk, percentage	100.00%	100.00%

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Summary of Significant Accounting Policies (Reconciliation of Cash, Cash Equivalents and Restricted Cash) (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Accounting Policies [Abstract]
Cash and cash equivalents	$ 12,917	$ 32,359	$ 53,174	$ 69,342
Restricted cash	166	521	14,735	10,888
Cash, cash equivalents and restricted cash	$ 13,083	$ 32,880	$ 67,909	$ 80,230

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Summary of Significant Accounting Policies (Investment In Real Estate) (Details)	12 Months Ended
	Dec. 31, 2022
Building and improvements | Minimum
Property, Plant and Equipment [Line Items]
Estimated useful life	15 years
Building and improvements | Maximum
Property, Plant and Equipment [Line Items]
Estimated useful life	40 years
Furniture, fixtures, and equipment | Minimum
Property, Plant and Equipment [Line Items]
Estimated useful life	3 years
Furniture, fixtures, and equipment | Maximum
Property, Plant and Equipment [Line Items]
Estimated useful life	10 years

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Real Estate Investments (Narrative) (Details) $ in Thousands		3 Months Ended								12 Months Ended
	Feb. 10, 2022 USD ($)	Dec. 31, 2022 USD ($) statisticalArea tenant transaction	Sep. 30, 2022 USD ($)	Jun. 30, 2022 USD ($)	Mar. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)	Sep. 30, 2021 USD ($)	Jun. 30, 2021 USD ($)	Mar. 31, 2021 USD ($)	Dec. 31, 2022 USD ($) property tenant statisticalArea transaction	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)
Real Estate [Line Items]
Number of real estate properties acquired | property										7
Number of transactions | transaction		5								5
Capitalized acquisition costs										$ 617
Number of real estate properties sold | property										1
Proceeds from real estate disposition										$ 22,822	$ 1,308,009	$ 28,542
Gain on real estate disposition		$ 0	$ 0	$ 0	$ 460	$ 89	$ 0	$ 0	$ 0	460	89	3,142
Impairment loss										47,424	$ 27,837	0
In-place leases
Real Estate [Line Items]
Impairment of acquired intangible assets										$ 4,345		1,504
Above-market leases
Real Estate [Line Items]
Impairment of acquired intangible assets												344
Revenue | Geographic Concentration Risk
Real Estate [Line Items]
Number of geographic concentration | statisticalArea		1								1
Revenue | Geographic Concentration Risk | Houston-The Woodlands-Sugar Land, Texas MSA
Real Estate [Line Items]
Concentration risk, percentage										11.00%
Revenue | Customer Concentration Risk
Real Estate [Line Items]
Number of major tenants | tenant		1								1
Revenue | Customer Concentration Risk | Post Acute Medical LLC and affiliates
Real Estate [Line Items]
Concentration risk, percentage										15.20%
2022 Disposition | Disposal Group, Disposed of by Sale, Not Discontinued Operations
Real Estate [Line Items]
Sale price of real estate dispositions	$ 24,000
Proceeds from real estate disposition	$ 22,701
Gain on real estate disposition										$ 460
Data Centers
Real Estate [Line Items]
Impairment of acquired intangible assets												$ 1,215

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Real Estate Investments (Schedule of Consideration Transferred for Properties Acquired) (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($)	Jul. 21, 2022	Jul. 20, 2022	May 20, 2022 property	May 12, 2022	Mar. 10, 2022
Business Acquisition [Line Items]
Consideration Transferred	$ 157,194
Yukon Healthcare Facility
Business Acquisition [Line Items]
Ownership Percentage						100.00%
Consideration Transferred	19,554
Pleasant Hills Healthcare Facility
Business Acquisition [Line Items]
Ownership Percentage					100.00%
Consideration Transferred	14,303
Prosser Healthcare Facilities
Business Acquisition [Line Items]
Ownership Percentage				100.00%
Consideration Transferred	8,593
Number of healthcare properties | property				3
Tampa Healthcare Facility II
Business Acquisition [Line Items]
Ownership Percentage			100.00%
Consideration Transferred	51,259
Escondido Healthcare Facility
Business Acquisition [Line Items]
Ownership Percentage		100.00%
Consideration Transferred	$ 63,485

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Real Estate Investments (Schedule of Allocation of Acquisitions) (Details) - 2022 Acquisitions $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($)
Business Acquisition [Line Items]
Total assets acquired	$ 157,657
Below-market leases	(463)
Net assets acquired	157,194
In-place leases
Business Acquisition [Line Items]
Leases	12,779
Above-market leases
Business Acquisition [Line Items]
Leases	454
Land
Business Acquisition [Line Items]
Property, plant and equipment acquired	2,646
Building and improvements
Business Acquisition [Line Items]
Property, plant and equipment acquired	136,938
Tenant improvements
Business Acquisition [Line Items]
Property, plant and equipment acquired	$ 4,840

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Real Estate Investments (Schedule of Rollforward of Goodwill) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Goodwill [Roll Forward]
Beginning balance, goodwill	$ 23,284	$ 23,955
Impairment loss on goodwill	(1,574)	(671)
Ending balance, goodwill	$ 21,710	$ 23,284

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Held for Sale and Discontinued Operations (Narrative) (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($) numberOfLandParcel	Dec. 31, 2020 USD ($)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Capital expenditures	$ 8,440	$ 25,285	$ 28,797
Disposal Group, Held-for-sale, Not Discontinued Operations | Healthcare
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Number of real estate properties owned | numberOfLandParcel		1
Held-for-sale or Disposed of by Sale | Data Centers
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Capital expenditures		$ 2,763	3,945
Non-cash operating activities			$ 764

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Held for Sale and Discontinued Operations (Disposal Group Financials) (Details) - USD ($) $ in Thousands		3 Months Ended				12 Months Ended
	Jul. 22, 2021	Dec. 31, 2021	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Assets:
Assets held for sale		$ 22,570				$ 0	$ 22,570
Liabilities:
Liabilities held for sale		698				0	698
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract]
Income from discontinued operations		0	$ 377,191	$ 16,305	$ 7,948	$ 0	401,444	$ 27,839
Notes payable, principal amount outstanding	$ 450,806
Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations
Assets:
Total real estate, net		22,241					22,241
Other assets, net		329					329
Assets held for sale		22,570					22,570
Liabilities:
Accounts payable and other liabilities		698					698
Liabilities held for sale		698					698
Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations | Land
Assets:
Total real estate, net		$ 22,241					22,241
Held-for-sale or Disposed of by Sale | Data Centers
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract]
Rental revenue							57,903	110,755
Lease termination revenue							7,075	0
Total revenue							64,978	110,755
Rental expenses							15,737	28,346
Asset management fees							0	5,310
Depreciation and amortization							11,759	35,634
Total expenses							27,496	69,290
Interest and other expense, net							31,839	13,626
Income from discontinued operations							5,643	27,839
Gain on real estate dispositions							395,801	0
Income from discontinued operations							401,444	27,839
Discontinued Operations, Disposed of by Sale | Data Centers
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract]
Income from discontinued operations							401,444	27,839
Interest expense attributable to discontinued operations							$ 31,856	$ 13,741
Debt extinguishment costs incurred	$ 23,738

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Acquired Intangible Assets, Net (Schedule of Acquired Intangible Assets, Net) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Acquired Finite-Lived Intangible Assets [Line Items]
Acquired intangible assets, accumulated amortization	$ 90,239	$ 71,067
Weighted average remaining useful life of intangible assets (in years)	8 years 9 months 18 days	9 years 6 months
Acquired intangible assets, net of accumulated amortization	$ 167,483	$ 181,639
In-place leases
Acquired Finite-Lived Intangible Assets [Line Items]
Acquired intangible assets, accumulated amortization	$ 83,788	$ 66,579
Weighted average remaining useful life of intangible assets (in years)	8 years 10 months 24 days	9 years 6 months
Acquired intangible assets, net of accumulated amortization	$ 155,365	$ 168,012
Above-market leases
Acquired Finite-Lived Intangible Assets [Line Items]
Acquired intangible assets, accumulated amortization	$ 6,451	$ 4,488
Weighted average remaining useful life of intangible assets (in years)	7 years 10 months 24 days	8 years 9 months 18 days
Acquired intangible assets, net of accumulated amortization	$ 12,118	$ 13,627

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Acquired Intangible Assets, Net (Narrative) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Finite-Lived Intangible Assets, Net [Abstract]
Weighted average remaining useful life of intangible assets (in years)	8 years 9 months 18 days	9 years 6 months
Amortization of acquired intangible assets	$ 27,389	$ 23,157	$ 23,876

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Acquired Intangible Assets, Net (Schedule of Estimated Future Amortization Expense of Acquired Intangible Assets) (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
2023	$ 22,221
2024	21,195
2025	19,204
2026	17,503
2027	15,926
Thereafter	71,434
Acquired intangible assets, net of accumulated amortization	$ 167,483	$ 181,639

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Acquired Intangible Liabilities, Net (Schedule of Acquired Intangible Liabilities, Net) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Intangible Lease Liabilities, Net [Abstract]
Accumulated amortization of below-market leases	$ 5,923	$ 4,444
Weighted average remaining life of below-market leases	8 years 4 months 24 days	9 years 3 months 18 days
Below-market leases, net of accumulated amortization	$ 11,946	$ 12,962

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Acquired Intangible Liabilities, Net (Narrative) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Intangible Lease Liabilities, Net [Abstract]
Amortization of below-market leases	$ 1,479	$ 1,322	$ 1,207

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Acquired Intangible Liabilities, Net (Schedule of Estimated Future Amortization of Acquired Intangible Liabilities) (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Intangible Lease Liabilities, Net [Abstract]
2023	$ 1,494
2024	1,494
2025	1,494
2026	1,475
2027	1,450
Thereafter	4,539
Acquired intangible liabilities, net	$ 11,946	$ 12,962

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Leases (Schedule of Future Minimum Rent to Lessor from Operating Leases) (Details) $ in Thousands	Dec. 31, 2022 USD ($)
Leases [Abstract]
2023	$ 172,907
2024	174,299
2025	170,346
2026	163,441
2027	159,797
Thereafter	938,204
Total	$ 1,778,994

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Leases (Schedule of Rent Payments from Lessee) (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Operating
2023	$ 2,675
2024	2,746
2025	2,768
2026	2,715
2027	2,681
Thereafter	107,456
Total undiscounted rental payments	121,041
Less imputed interest	(79,487)
Total lease liabilities	$ 41,554	$ 26,394
Operating lease, weighted average incremental borrowing rate, percent	5.50%
Operating lease, weighted average remaining lease term (in years)	37 years 6 months

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Leases (Schedule of Lease Cost) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$ 531	$ 1,067	$ 270
Rental expenses
Lessee, Lease, Description [Line Items]
Operating lease costs	2,246	1,846	1,741
Income from discontinued operations
Lessee, Lease, Description [Line Items]
Operating lease costs	0	414	880
General and administrative expenses
Lessee, Lease, Description [Line Items]
Operating lease costs	$ 741	$ 1,129	$ 264

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Other Assets (Schedule of Other Assets) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Other Assets [Abstract]
Deferred financing costs, related to the revolver portion of the credit facility, net of accumulated amortization of $889 and $8,332, respectively	$ 3,178	$ 482
Leasing commissions, net of accumulated amortization of $167 and $121, respectively	775	780
Restricted cash	166	521
Tenant receivables	1,736	1,851
Straight-line rent receivable	62,457	55,725
Prepaid and other assets	3,865	4,835
Derivative assets	27,990	2,171
Total other assets	100,167	66,365
Deferred financing costs, related to the revolver portion of the credit facility, accumulated amortization	889	8,332
Leasing commissions, accumulated amortization	167	121
Line of Credit Facility [Line Items]
Amortization of deferred financing costs	1,679	3,425	$ 3,884
Revolving Line of Credit
Line of Credit Facility [Line Items]
Amortization of deferred financing costs	$ 1,087	$ 1,430	$ 1,206

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Accounts Payable and Other Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Payables and Accruals [Abstract]
Accounts payable and accrued expenses	$ 5,387	$ 9,409
Accrued interest expense	1,941	1,626
Accrued property taxes	2,421	2,913
Accrued personnel costs	3,940	4,198
Distribution and servicing fees	0	182
Distributions payable to stockholders	7,719	7,355
Performance DSUs distributions payable	573	394
Tenant deposits	877	802
Deferred rental income	7,761	7,100
Derivative liabilities	0	5,618
Total accounts payable and other liabilities	$ 30,619	$ 39,597

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Credit Facility (Schedule of Credit Facility) (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Line of Credit Facility [Line Items]
Total credit facility, Weighted Average Contractual Rate	3.37%
Total credit facility, principal amount outstanding	$ 583,000	$ 500,000
Unamortized deferred financing costs related to the term loan credit facility	(2,412)	(3,226)
Total credit facility, net of deferred financing costs	$ 580,588	496,774
Revolving Line of Credit | Variable rate revolving line of credit
Line of Credit Facility [Line Items]
Total credit facility, Weighted Average Contractual Rate	5.47%
Total credit facility, principal amount outstanding	$ 8,000	0
Term Loan | Variable rate term loans fixed through interest rate swaps
Line of Credit Facility [Line Items]
Total credit facility, Weighted Average Contractual Rate	2.95%
Total credit facility, principal amount outstanding	$ 485,000	400,000
Term Loan | Variable rate term loans
Line of Credit Facility [Line Items]
Total credit facility, Weighted Average Contractual Rate	5.47%
Total credit facility, principal amount outstanding	$ 90,000	$ 100,000

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Credit Facility (Narrative) (Details)				12 Months Ended
	Jul. 20, 2022 USD ($)	Jul. 12, 2022 USD ($)	May 17, 2022 USD ($)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)	Apr. 08, 2022 USD ($) agreement	Feb. 15, 2022 USD ($)	Feb. 14, 2022 USD ($)
Line of Credit Facility [Line Items]
Loss on extinguishment of debt				$ 3,367,000	$ 28,751,000	$ 0
Debt extinguishment costs				4,000	29,244,000	0
Accelerated unamortized debt issuance costs				3,363,000
Minimum draw			$ 20,000,000
Proceeds from credit facility				845,000,000	15,000,000	140,000,000
Payments on credit facility				762,000,000	$ 453,000,000	$ 110,000,000
Interest rate swaps
Line of Credit Facility [Line Items]
Number of derivative instruments | agreement							5
Interest Rate Swap, Effective Date May 2, 2022
Line of Credit Facility [Line Items]
Number of derivative instruments | agreement							2
Notational amount							$ 85,000,000
Interest Rate Swap, Effective Date May 1, 2023
Line of Credit Facility [Line Items]
Number of derivative instruments | agreement							3
Notational amount							$ 150,000,000
Unsecured Credit Facility
Line of Credit Facility [Line Items]
Commitments available				1,075,000,000
Unsecured Debt | Term Loan
Line of Credit Facility [Line Items]
Commitments available								$ 300,000,000
Term loan, maximum increase								600,000,000
Unsecured Debt | 2028 Term Loan
Line of Credit Facility [Line Items]
Commitments available			275,000,000
Term loan, maximum increase			500,000,000
Proceeds from term loan	$ 20,000,000	$ 50,000,000	$ 205,000,000
Ticketing fee			0.25%
Fee percentage, average daily amount outstanding less than half of commitments			0.20%
Fee percentage, average daily amount outstanding more than half of commitments			0.15%
Unsecured Debt | 2028 Term Loan | Base Rate | Minimum
Line of Credit Facility [Line Items]
Margin range			0.25%
Unsecured Debt | 2028 Term Loan | Base Rate | Maximum
Line of Credit Facility [Line Items]
Margin range			0.90%
Unsecured Debt | 2028 Term Loan | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Minimum
Line of Credit Facility [Line Items]
Margin range			1.25%
Unsecured Debt | 2028 Term Loan | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Maximum
Line of Credit Facility [Line Items]
Margin range			1.90%
Revolving Line of Credit
Line of Credit Facility [Line Items]
Debt extinguishment costs				4,000
Proceeds from credit facility				70,000,000
Payments on credit facility				$ 57,000,000
Revolving Line of Credit | Variable rate revolving line of credit
Line of Credit Facility [Line Items]
Commitments available								500,000,000	$ 500,000,000
Revolving Line of Credit | Unsecured Debt
Line of Credit Facility [Line Items]
Credit facility, maximum increase								$ 1,000,000,000

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Credit Facility (Schedule of Principal Payments Due on Credit Facility) (Details) $ in Thousands	Dec. 31, 2022 USD ($)
Debt Disclosure [Abstract]
2023	$ 0
2024	300,000
2025	0
2026	8,000
2027	0
Thereafter	275,000
Total	$ 583,000

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Fair Value (Narrative) (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Fair Value Disclosures [Abstract]
Total credit facility, principal amount outstanding	$ 583,000	$ 500,000

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Fair Value (Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis) (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Assets:
Derivative assets	$ 27,990	$ 2,171
Liabilities:
Derivative liabilities	0	5,618
Recurring basis
Assets:
Derivative assets	27,990	2,171
Total assets at fair value	27,990	2,171
Liabilities:
Derivative liabilities		5,618
Total liabilities at fair value		5,618
Quoted Prices in Active Markets for Identical Assets (Level 1) | Recurring basis
Assets:
Derivative assets	0	0
Total assets at fair value	0	0
Liabilities:
Derivative liabilities		0
Total liabilities at fair value		0
Significant Other Observable Inputs (Level 2) | Recurring basis
Assets:
Derivative assets	27,990	2,171
Total assets at fair value	27,990	2,171
Liabilities:
Derivative liabilities		5,618
Total liabilities at fair value		5,618
Significant Unobservable Inputs (Level 3) | Recurring basis
Assets:
Derivative assets	0	0
Total assets at fair value	$ 0	0
Liabilities:
Derivative liabilities		0
Total liabilities at fair value		$ 0

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Fair Value (Schedule of Fair Value, Real Estate Assets Measured on Non-Recurring Basis) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2020	Dec. 31, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Estimated fair value	$ 1,880,082		$ 1,827,305
Impairment, Intangible Asset, Finite-Lived, Statement of Income or Comprehensive Income [Extensible Enumeration]	Depreciation and amortization
In-place leases
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impairment of acquired intangible assets	$ 4,345	$ 1,504
Nonrecurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Estimated fair value	13,898
Impairment loss on real estate	51,769
Nonrecurring | Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Estimated fair value	0
Nonrecurring | Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Estimated fair value	0
Nonrecurring | Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Estimated fair value	$ 13,898

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Fair Value (Summary of Significant Unobservable Inputs) (Details) - Significant Unobservable Inputs (Level 3) - Valuation, Market Approach	Dec. 31, 2022 $ / sqft
Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Comparable sale price per square foot (in dollars per square foot)	5.01
Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Comparable sale price per square foot (in dollars per square foot)	6.56

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Derivative Instruments and Hedging Activities (Narrative) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Additional gain expected to be reclassified from AOCI into earnings during next twelve months		$ 18,078
OCI, Cash Flow Hedge, Reclassification for Discontinuance, Statement of Income or Comprehensive Income [Extensible Enumeration]	Interest and other expense, net
Gain on accelerated reclassification amounts	$ 67

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Derivative Instruments and Hedging Activities (Schedule of the Notional Amount and Fair Value of Derivative Instruments) (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Derivatives, Fair Value [Line Items]
Fair Value of Asset	$ 27,990	$ 2,171
Fair Value of Liability	0	(5,618)
Interest rate swaps | Designated as Hedging Instrument
Derivatives, Fair Value [Line Items]
Outstanding Notional Amount	485,000	400,000
Interest rate swaps | Designated as Hedging Instrument | Other Assets
Derivatives, Fair Value [Line Items]
Fair Value of Asset	27,990	2,171
Interest rate swaps | Designated as Hedging Instrument | Accounts Payable and Other Liabilities
Derivatives, Fair Value [Line Items]
Fair Value of Liability	$ 0	$ (5,618)

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Derivative Instruments and Hedging Activities (Schedule of Income and Losses Recognized on Derivative Instruments) (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2022	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Income (Loss) Recognized in Other Comprehensive Income on Derivatives										$ 5,919	$ (23,583)
Amount of Loss Reclassified From Accumulated Other Comprehensive Income (Loss) to Net (Loss) Income										(9,678)	(7,843)
Interest and other expense, net	$ 5,830	$ 5,498	$ 4,329	$ 8,115	$ 4,480	$ 11,737	$ 9,534	$ 8,764	$ 23,772	34,515	42,025
Income from discontinued operations					$ 0	$ 377,191	$ 16,305	$ 7,948	0	401,444	27,839
Data Centers | Discontinued Operations, Disposed of by Sale
Derivative Instruments, Gain (Loss) [Line Items]
Income from discontinued operations										401,444	27,839
Continuing Operations
Derivative Instruments, Gain (Loss) [Line Items]
Interest and other expense, net									23,772	34,515	42,025
Interest rate swaps | Data Centers | Discontinued Operations, Disposed of by Sale
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Income (Loss) Recognized in Other Comprehensive Income on Derivatives										(37)	(3,907)
Interest rate swaps | Continuing Operations
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Income (Loss) Recognized in Other Comprehensive Income on Derivatives									32,317	5,956	(19,676)
Interest rate swaps | Interest and other expense, net | Continuing Operations
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Loss Reclassified From Accumulated Other Comprehensive Income (Loss) to Net (Loss) Income									$ (520)	(8,031)	(6,263)
Interest rate swaps | Income from discontinued operations | Data Centers | Discontinued Operations, Disposed of by Sale
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Loss Reclassified From Accumulated Other Comprehensive Income (Loss) to Net (Loss) Income										$ (1,647)	$ (1,580)

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Derivative Instruments and Hedging Activities (Schedule of Offsetting of Derivative Assets) (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Gross Amounts of Recognized Assets	$ 27,990	$ 2,171
Gross Amounts Offset in the Balance Sheet	0	0
Net Amounts of Assets Presented in the Balance Sheet	27,990	2,171
Gross Amounts Not Offset in the Balance Sheet, Financial Instruments Collateral	0	(1,023)
Gross Amounts Not Offset in the Balance Sheet, Cash Collateral	0	0
Net Amount	$ 27,990	$ 1,148

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Derivative Instruments and Hedging Activities (Schedule of Offsetting of Derivative Liabilities) (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Gross Amounts of Recognized Liabilities	$ 0	$ 5,618
Gross Amounts Offset in the Balance Sheet	0	0
Net Amounts of Liabilities Presented in the Balance Sheet	0	5,618
Gross Amounts Not Offset in the Balance Sheet, Financial Instruments Collateral	0	(1,023)
Gross Amounts Not Offset in the Balance Sheet, Cash Collateral	0	0
Net Amount	$ 0	$ 4,595

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Stockholders' Equity (Narrative) (Details) $ / shares in Units, $ in Thousands							12 Months Ended
	Mar. 15, 2023 $ / shares	Mar. 06, 2023 USD ($)	Feb. 17, 2023 $ / shares	Feb. 06, 2023 USD ($)	Jan. 18, 2023 $ / shares	Jan. 06, 2023 USD ($)	Dec. 31, 2022 USD ($) $ / shares shares	Dec. 31, 2021 USD ($) $ / shares shares	Dec. 31, 2020 USD ($) $ / shares shares
Class of Stock [Line Items]
Distributions declared per common share (in dollars per share) | $ / shares							$ 0.40	$ 2.19	$ 0.48
Special cash distribution per common share (in dollars per share) | $ / shares								$ 1.75
Repurchase of common stock, percentage of shares (as a percent)							0.0050	0.0051
Repurchase of common stock									$ (29,487)
Issuance of common stock under the distribution reinvestment plan							$ 24,834	$ 27,584	$ 30,553
Common Stock
Class of Stock [Line Items]
Repurchase of common stock (in shares) | shares							(1,123,183)	(1,133,901)	(3,408,870)
Repurchase of common stock							$ (11)	$ (11)	$ (34)
Issuance of common stock under the distribution reinvestment plan							$ 30	$ 33	$ 35
Subsequent Event
Class of Stock [Line Items]
Distributions paid		$ 6,982		$ 7,734		$ 7,719
Cash		5,063		5,609		5,592
Issuance of common stock under the distribution reinvestment plan		1,919		2,125		2,127
Class A, I and T Shares | Common Stock
Class of Stock [Line Items]
Repurchase of common stock (in shares) | shares							(1,123,183)	(1,133,901)
Repurchase of common stock							$ (9,217)	$ (9,528)
Repurchase of common stock, average price per share (in dollars per share) | $ / shares							$ 8.21	$ 8.40
Class A | Common Stock
Class of Stock [Line Items]
Repurchase of common stock (in shares) | shares							(981,772)	(1,055,054)
Class A | Subsequent Event
Class of Stock [Line Items]
Distributions declared per common share (in dollars per share) | $ / shares	$ 0.00109589		$ 0.00109589		$ 0.00109589
Distributions paid		5,204		5,767		5,755
Cash		4,081		4,522		4,506
Issuance of common stock under the distribution reinvestment plan		1,123		1,245		1,249
Class I | Common Stock
Class of Stock [Line Items]
Repurchase of common stock (in shares) | shares							(31,666)	(11,836)
Class I | Subsequent Event
Class of Stock [Line Items]
Distributions declared per common share (in dollars per share) | $ / shares	0.00109589		0.00109589		0.00109589
Distributions paid		516		570		569
Cash		307		339		338
Issuance of common stock under the distribution reinvestment plan		209		231		231
Class T | Common Stock
Class of Stock [Line Items]
Repurchase of common stock (in shares) | shares							(109,745)	(67,011)
Class T | Subsequent Event
Class of Stock [Line Items]
Distributions declared per common share (in dollars per share) | $ / shares	$ 0.00109589		$ 0.00109589		$ 0.00109589
Distributions paid		1,262		1,397		1,395
Cash		675		748		748
Issuance of common stock under the distribution reinvestment plan		$ 587		$ 649		$ 647

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Stockholders' Equity (Amounts Recognized in AOCI) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance, beginning		$ 1,653,873	$ 1,738,419
Other comprehensive income (loss)			(15,740)
Balance, ending			1,653,873
Unrealized Income (Loss) on Derivative Instruments
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance, beginning	$ (4,847)	(20,444)	(4,704)
Other comprehensive income (loss) before reclassification	32,317	5,919	(23,583)
Amount of loss reclassified from accumulated other comprehensive income (loss) to net income (loss)	520	9,678	7,843
Other comprehensive income (loss)	32,837	15,597	(15,740)
Balance, ending	$ 27,990	$ (4,847)	$ (20,444)

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Stockholders' Equity (Reclassifications Out of AOCI) (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2022	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Interest and other expense, net	$ 5,830	$ 5,498	$ 4,329	$ 8,115	$ 4,480	$ 11,737	$ 9,534	$ 8,764	$ 23,772	$ 34,515	$ 42,025
Income from discontinued operations					0	(377,191)	(16,305)	(7,948)	0	(401,444)	(27,839)
Net income (loss) attributable to common stockholders	$ 34,762	$ (13,392)	$ (12,021)	$ (1,371)	$ (12,077)	$ (371,645)	$ (16,056)	$ (2,882)	7,978	(402,660)	(36,776)
Interest rate swaps | Loss Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) to Net (Loss) Income | Reclassification out of Accumulated Other Comprehensive Income (Loss)
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Interest and other expense, net									520	8,031	6,263
Income from discontinued operations									0	1,647	1,580
Net income (loss) attributable to common stockholders									$ 520	$ 9,678	$ 7,843

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Earnings Per Share (Details) - shares shares in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Earnings Per Share [Abstract]
Anti-dilutive shares excluded from computation of earnings per share (in shares)	1,341	968
Diluted earnings per share outstanding adjustment (in shares)			186

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Stock-based Compensation (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Mar. 06, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Accelerated stock-based compensation	$ 326,000
Stock-based compensation	4,180,000	$ 2,379,000	$ 437,000
Restricted Class A Common Stock And Performance DSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense	$ 6,834,000	5,886,000
Unrecognized compensation expense, weighted average period of recognition	2 years 7 days
Fair value of nonvested shares of restricted common stock	$ 11,703,000	$ 7,991,000
Class A
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of authorized and reserved shares of common stock under plan (in shares)				5,000,000

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Stock-based Compensation (Schedule of Nonvested Shares of Restricted Common Stock Activity) (Details)	12 Months Ended
	Dec. 31, 2022 shares
Restricted Class A Common Stock And Performance DSUs
Summary of Restricted Common Stock Activity, Nonvested, Number of Shares [Roll Forward]
Beginning balance (in shares)	974,558
Ending balance (in shares)	1,423,690
Class A
Summary of Restricted Common Stock Activity, Nonvested, Number of Shares [Roll Forward]
Vested (in shares)	(167,500)
Forfeited (in shares)	(16,344)
Granted (in shares)	335,854
Performance DSUs
Summary of Restricted Common Stock Activity, Nonvested, Number of Shares [Roll Forward]
Vested (in shares)	(5,387)
Forfeited (in shares)	(15,438)
Granted (in shares)	317,947

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Income Taxes (Narrative) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Income Tax Disclosure [Abstract]
Impact related to uncertain tax positions from the results of operations	$ 0	$ 0	$ 0
Interest expense or penalties related to unrecognized tax benefits	$ 0

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Income Taxes (Schedule of Characterization of Distributions Paid to Stockholders) (Details)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Common Class A, I, T and T2 Shares
Income Taxes [Line Items]
Ordinary dividends (as a percent)	40.94%	27.91%	0.00%
Capital gain distributions (as a percent)	0.00%	0.00%	0.00%
Nontaxable distributions (as a percent)	59.06%	72.09%	100.00%
Total (as a percent)	100.00%	100.00%	100.00%
Special Dividends
Income Taxes [Line Items]
Ordinary dividends (as a percent)	0.00%	12.39%	0.00%
Capital gain distributions (as a percent)	0.00%	86.66%	0.00%
Nontaxable distributions (as a percent)	0.00%	0.95%	0.00%
Total (as a percent)	0.00%	100.00%	0.00%

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Commitments and Contingencies (Details)	Dec. 31, 2022 legalProceeding
Commitments and Contingencies Disclosure [Abstract]
Number of pending legal proceedings to which the company is a party	0

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Selected Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2022	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Selected Quarterly Financial Information [Abstract]
Total revenue	$ 43,905	$ 46,881	$ 44,918	$ 44,282	$ 43,606	$ 43,063	$ 43,747	$ 42,422	$ 179,986	$ 172,838	$ 165,781
Total expenses	(72,837)	(27,991)	(28,568)	(35,256)	(27,138)	(36,872)	(34,462)	(38,724)	(164,652)	(137,196)	(117,961)
Gain on real estate disposition	0	0	0	460	89	0	0	0	460	89	3,142
Interest and other expense, net	(5,830)	(5,498)	(4,329)	(8,115)	(4,480)	(11,737)	(9,534)	(8,764)	(23,772)	(34,515)	(42,025)
Income (loss) from continuing operations	(34,762)	13,392	12,021	1,371	12,077	(5,546)	(249)	(5,066)	(7,978)	1,216	8,937
Income from discontinued operations					0	377,191	16,305	7,948	0	401,444	27,839
Net income (loss) attributable to common stockholders	$ (34,762)	$ 13,392	$ 12,021	$ 1,371	$ 12,077	$ 371,645	$ 16,056	$ 2,882	$ (7,978)	$ 402,660	$ 36,776
Net (loss) income per common share attributable to common stockholders:
Basic, continuing operations (in dollars per share)					$ 0.05	$ (0.03)	$ 0	$ (0.02)	$ (0.03)	$ 0	$ 0.04
Basic, discontinued operations (in dollars per share)					0	1.69	0.07	0.03	0	1.80	0.13
Basic (in dollars per share)	$ (0.15)	$ 0.06	$ 0.05	$ 0.01	0.05	1.66	0.07	0.01	(0.03)	1.80	0.17
Diluted, continuing operations (in dollars per share)					0.05	(0.03)	0	(0.02)	(0.03)	0	0.04
Diluted, discontinued operations (in dollars per share)					0	1.69	0.07	0.03	0	1.79	0.13
Diluted (in dollars per share)	$ (0.15)	$ 0.06	$ 0.05	$ 0.01	$ 0.05	$ 1.66	$ 0.07	$ 0.01	$ (0.03)	$ 1.79	$ 0.17
Weighted average number of common shares outstanding:
Basic (in shares)	226,112,737	225,638,485	225,008,452	224,499,307	224,054,323	223,661,774	223,082,912	222,481,179	225,320,043	223,325,293	221,436,617
Diluted (in shares)	226,112,737	226,957,015	226,362,977	225,865,366	225,031,906	223,661,774	223,082,912	222,481,179	225,320,043	224,293,339	221,622,444

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Subsequent Events (Distributions) (Details) - USD ($) $ / shares in Units, $ in Thousands							1 Months Ended			12 Months Ended
	Mar. 15, 2023	Mar. 06, 2023	Feb. 17, 2023	Feb. 06, 2023	Jan. 18, 2023	Jan. 06, 2023	Apr. 30, 2023	Mar. 31, 2023	Feb. 28, 2023	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Subsequent Event [Line Items]
Issuance of common stock under the distribution reinvestment plan										$ 24,834	$ 27,584	$ 30,553
Distributions declared per common share (in dollars per share)										$ 0.40	$ 2.19	$ 0.48
Subsequent Event
Subsequent Event [Line Items]
Cash		$ 5,063		$ 5,609		$ 5,592
Issuance of common stock under the distribution reinvestment plan		1,919		2,125		2,127
Distributions paid		6,982		7,734		7,719
Class A | Subsequent Event
Subsequent Event [Line Items]
Cash		4,081		4,522		4,506
Issuance of common stock under the distribution reinvestment plan		1,123		1,245		1,249
Distributions paid		5,204		5,767		5,755
Distributions declared per common share (in dollars per share)	$ 0.00109589		$ 0.00109589		$ 0.00109589
Annualized distribution per share (in dollars per share)	0.40		0.40		0.40
Class I | Subsequent Event
Subsequent Event [Line Items]
Cash		307		339		338
Issuance of common stock under the distribution reinvestment plan		209		231		231
Distributions paid		516		570		569
Distributions declared per common share (in dollars per share)	0.00109589		0.00109589		0.00109589
Annualized distribution per share (in dollars per share)	0.40		0.40		0.40
Class T | Subsequent Event
Subsequent Event [Line Items]
Cash		675		748		748
Issuance of common stock under the distribution reinvestment plan		587		649		647
Distributions paid		$ 1,262		$ 1,397		$ 1,395
Distributions declared per common share (in dollars per share)	0.00109589		0.00109589		0.00109589
Annualized distribution per share (in dollars per share)	$ 0.40		$ 0.40		$ 0.40
Class A, I and T shares | Subsequent Event
Subsequent Event [Line Items]
Number of days, distribution calculation							365 days	365 days	365 days

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SCHEDULE III - REAL ESTATE ASSETS AND ACCUMULATED DEPRECIATION (SCHEDULE OF REAL ESTATE ASSETS AND ACCUMULATED DEPRECIATION) (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	$ 0
Initial Cost, Land	167,362
Initial Cost, Buildings and Improvements	1,857,705
Cost Capitalized Subsequent to Acquisition	64,133
Gross Amount Carried at Close of Period, Land	163,419
Gross Amount Carried at Close of Period, Buildings and Improvements	1,925,781
Gross Amount Carried at Close of Period, Total	2,089,200	$ 2,015,330	$ 2,890,958	$ 2,896,766
Accumulated Depreciation	209,118	$ 165,784	$ 197,134	$ 128,304
Houston Healthcare Facility
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	762
Initial Cost, Buildings and Improvements	2,970
Cost Capitalized Subsequent to Acquisition	106
Gross Amount Carried at Close of Period, Land	762
Gross Amount Carried at Close of Period, Buildings and Improvements	3,076
Gross Amount Carried at Close of Period, Total	3,838
Accumulated Depreciation	857
Cincinnati Healthcare Facility
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	356
Initial Cost, Buildings and Improvements	3,167
Cost Capitalized Subsequent to Acquisition	89
Gross Amount Carried at Close of Period, Land	356
Gross Amount Carried at Close of Period, Buildings and Improvements	3,256
Gross Amount Carried at Close of Period, Total	3,612
Accumulated Depreciation	804
Winston-Salem Healthcare Facility
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	684
Initial Cost, Buildings and Improvements	4,903
Cost Capitalized Subsequent to Acquisition	0
Gross Amount Carried at Close of Period, Land	684
Gross Amount Carried at Close of Period, Buildings and Improvements	4,903
Gross Amount Carried at Close of Period, Total	5,587
Accumulated Depreciation	1,175
Stoughton Healthcare Facility
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	4,049
Initial Cost, Buildings and Improvements	19,991
Cost Capitalized Subsequent to Acquisition	3,247
Gross Amount Carried at Close of Period, Land	4,049
Gross Amount Carried at Close of Period, Buildings and Improvements	23,238
Gross Amount Carried at Close of Period, Total	27,287
Accumulated Depreciation	4,970
Fort Worth Healthcare Facility
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	8,297
Initial Cost, Buildings and Improvements	35,615
Cost Capitalized Subsequent to Acquisition	0
Gross Amount Carried at Close of Period, Land	8,297
Gross Amount Carried at Close of Period, Buildings and Improvements	35,615
Gross Amount Carried at Close of Period, Total	43,912
Accumulated Depreciation	7,508
Fort Worth Healthcare Facility II
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	367
Initial Cost, Buildings and Improvements	1,587
Cost Capitalized Subsequent to Acquisition	201
Gross Amount Carried at Close of Period, Land	367
Gross Amount Carried at Close of Period, Buildings and Improvements	1,788
Gross Amount Carried at Close of Period, Total	2,155
Accumulated Depreciation	621
Winter Haven Healthcare Facility
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	0
Initial Cost, Buildings and Improvements	2,805
Cost Capitalized Subsequent to Acquisition	0
Gross Amount Carried at Close of Period, Land	0
Gross Amount Carried at Close of Period, Buildings and Improvements	2,805
Gross Amount Carried at Close of Period, Total	2,805
Accumulated Depreciation	620
Overland Park Healthcare Facility
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	1,558
Initial Cost, Buildings and Improvements	20,549
Cost Capitalized Subsequent to Acquisition	0
Gross Amount Carried at Close of Period, Land	1,558
Gross Amount Carried at Close of Period, Buildings and Improvements	20,549
Gross Amount Carried at Close of Period, Total	22,107
Accumulated Depreciation	4,254
Clarion Healthcare Facility
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	462
Initial Cost, Buildings and Improvements	5,377
Cost Capitalized Subsequent to Acquisition	0
Gross Amount Carried at Close of Period, Land	462
Gross Amount Carried at Close of Period, Buildings and Improvements	5,377
Gross Amount Carried at Close of Period, Total	5,839
Accumulated Depreciation	1,371
Webster Healthcare Facility
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	1,858
Initial Cost, Buildings and Improvements	20,140
Cost Capitalized Subsequent to Acquisition	0
Gross Amount Carried at Close of Period, Land	1,858
Gross Amount Carried at Close of Period, Buildings and Improvements	20,140
Gross Amount Carried at Close of Period, Total	21,998
Accumulated Depreciation	3,983
Augusta Healthcare Facility
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	556
Initial Cost, Buildings and Improvements	14,401
Cost Capitalized Subsequent to Acquisition	103
Gross Amount Carried at Close of Period, Land	556
Gross Amount Carried at Close of Period, Buildings and Improvements	14,504
Gross Amount Carried at Close of Period, Total	15,060
Accumulated Depreciation	3,042
Cincinnati Healthcare Facility II
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	1,812
Initial Cost, Buildings and Improvements	24,382
Cost Capitalized Subsequent to Acquisition	(14,422)
Gross Amount Carried at Close of Period, Land	943
Gross Amount Carried at Close of Period, Buildings and Improvements	10,829
Gross Amount Carried at Close of Period, Total	11,772
Accumulated Depreciation	0
Cincinnati Healthcare Facility III
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	446
Initial Cost, Buildings and Improvements	10,239
Cost Capitalized Subsequent to Acquisition	4
Gross Amount Carried at Close of Period, Land	446
Gross Amount Carried at Close of Period, Buildings and Improvements	10,243
Gross Amount Carried at Close of Period, Total	10,689
Accumulated Depreciation	2,031
Florence Healthcare Facility
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	650
Initial Cost, Buildings and Improvements	9,919
Cost Capitalized Subsequent to Acquisition	0
Gross Amount Carried at Close of Period, Land	650
Gross Amount Carried at Close of Period, Buildings and Improvements	9,919
Gross Amount Carried at Close of Period, Total	10,569
Accumulated Depreciation	1,960
Oakland Healthcare Facility
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	229
Initial Cost, Buildings and Improvements	5,416
Cost Capitalized Subsequent to Acquisition	0
Gross Amount Carried at Close of Period, Land	229
Gross Amount Carried at Close of Period, Buildings and Improvements	5,416
Gross Amount Carried at Close of Period, Total	5,645
Accumulated Depreciation	1,235
Wyomissing Healthcare Facility
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	1,504
Initial Cost, Buildings and Improvements	20,193
Cost Capitalized Subsequent to Acquisition	0
Gross Amount Carried at Close of Period, Land	1,504
Gross Amount Carried at Close of Period, Buildings and Improvements	20,193
Gross Amount Carried at Close of Period, Total	21,697
Accumulated Depreciation	4,070
Luling Healthcare Facility
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	824
Initial Cost, Buildings and Improvements	7,530
Cost Capitalized Subsequent to Acquisition	0
Gross Amount Carried at Close of Period, Land	824
Gross Amount Carried at Close of Period, Buildings and Improvements	7,530
Gross Amount Carried at Close of Period, Total	8,354
Accumulated Depreciation	1,509
Omaha Healthcare Facility
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	1,259
Initial Cost, Buildings and Improvements	9,796
Cost Capitalized Subsequent to Acquisition	0
Gross Amount Carried at Close of Period, Land	1,259
Gross Amount Carried at Close of Period, Buildings and Improvements	9,796
Gross Amount Carried at Close of Period, Total	11,055
Accumulated Depreciation	1,856
Sherman Healthcare Facility
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	1,679
Initial Cost, Buildings and Improvements	23,926
Cost Capitalized Subsequent to Acquisition	0
Gross Amount Carried at Close of Period, Land	1,679
Gross Amount Carried at Close of Period, Buildings and Improvements	23,926
Gross Amount Carried at Close of Period, Total	25,605
Accumulated Depreciation	4,429
Sherman Healthcare Facility II
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	214
Initial Cost, Buildings and Improvements	3,209
Cost Capitalized Subsequent to Acquisition	0
Gross Amount Carried at Close of Period, Land	214
Gross Amount Carried at Close of Period, Buildings and Improvements	3,209
Gross Amount Carried at Close of Period, Total	3,423
Accumulated Depreciation	599
Fort Worth Healthcare Facility III
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	3,120
Initial Cost, Buildings and Improvements	9,312
Cost Capitalized Subsequent to Acquisition	0
Gross Amount Carried at Close of Period, Land	3,120
Gross Amount Carried at Close of Period, Buildings and Improvements	9,312
Gross Amount Carried at Close of Period, Total	12,432
Accumulated Depreciation	1,725
Oklahoma City Healthcare Facility
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	4,626
Initial Cost, Buildings and Improvements	30,509
Cost Capitalized Subsequent to Acquisition	0
Gross Amount Carried at Close of Period, Land	4,626
Gross Amount Carried at Close of Period, Buildings and Improvements	30,509
Gross Amount Carried at Close of Period, Total	35,135
Accumulated Depreciation	5,834
Oklahoma City Healthcare Facility II
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	991
Initial Cost, Buildings and Improvements	8,366
Cost Capitalized Subsequent to Acquisition	0
Gross Amount Carried at Close of Period, Land	991
Gross Amount Carried at Close of Period, Buildings and Improvements	8,366
Gross Amount Carried at Close of Period, Total	9,357
Accumulated Depreciation	1,701
Edmond Healthcare Facility
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	796
Initial Cost, Buildings and Improvements	3,199
Cost Capitalized Subsequent to Acquisition	0
Gross Amount Carried at Close of Period, Land	796
Gross Amount Carried at Close of Period, Buildings and Improvements	3,199
Gross Amount Carried at Close of Period, Total	3,995
Accumulated Depreciation	655
Oklahoma City Healthcare Facility III
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	452
Initial Cost, Buildings and Improvements	1,081
Cost Capitalized Subsequent to Acquisition	0
Gross Amount Carried at Close of Period, Land	452
Gross Amount Carried at Close of Period, Buildings and Improvements	1,081
Gross Amount Carried at Close of Period, Total	1,533
Accumulated Depreciation	227
Oklahoma City Healthcare Facility IV
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	368
Initial Cost, Buildings and Improvements	2,344
Cost Capitalized Subsequent to Acquisition	0
Gross Amount Carried at Close of Period, Land	368
Gross Amount Carried at Close of Period, Buildings and Improvements	2,344
Gross Amount Carried at Close of Period, Total	2,712
Accumulated Depreciation	480
Newcastle Healthcare Facility
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	412
Initial Cost, Buildings and Improvements	1,173
Cost Capitalized Subsequent to Acquisition	0
Gross Amount Carried at Close of Period, Land	412
Gross Amount Carried at Close of Period, Buildings and Improvements	1,173
Gross Amount Carried at Close of Period, Total	1,585
Accumulated Depreciation	245
Oklahoma City Healthcare Facility V
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	541
Initial Cost, Buildings and Improvements	12,445
Cost Capitalized Subsequent to Acquisition	0
Gross Amount Carried at Close of Period, Land	541
Gross Amount Carried at Close of Period, Buildings and Improvements	12,445
Gross Amount Carried at Close of Period, Total	12,986
Accumulated Depreciation	2,524
Rancho Mirage Healthcare Facility
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	2,724
Initial Cost, Buildings and Improvements	7,626
Cost Capitalized Subsequent to Acquisition	29,844
Gross Amount Carried at Close of Period, Land	2,726
Gross Amount Carried at Close of Period, Buildings and Improvements	37,468
Gross Amount Carried at Close of Period, Total	40,194
Accumulated Depreciation	4,098
Oklahoma City Healthcare Facility VI
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	896
Initial Cost, Buildings and Improvements	3,684
Cost Capitalized Subsequent to Acquisition	0
Gross Amount Carried at Close of Period, Land	896
Gross Amount Carried at Close of Period, Buildings and Improvements	3,684
Gross Amount Carried at Close of Period, Total	4,580
Accumulated Depreciation	760
Oklahoma City Healthcare Facility VII
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	3,203
Initial Cost, Buildings and Improvements	32,380
Cost Capitalized Subsequent to Acquisition	0
Gross Amount Carried at Close of Period, Land	3,203
Gross Amount Carried at Close of Period, Buildings and Improvements	32,380
Gross Amount Carried at Close of Period, Total	35,583
Accumulated Depreciation	5,558
Las Vegas Healthcare Facility
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	2,614
Initial Cost, Buildings and Improvements	639
Cost Capitalized Subsequent to Acquisition	22,091
Gross Amount Carried at Close of Period, Land	2,895
Gross Amount Carried at Close of Period, Buildings and Improvements	22,449
Gross Amount Carried at Close of Period, Total	25,344
Accumulated Depreciation	2,985
Oklahoma City Healthcare Facility VIII
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	2,002
Initial Cost, Buildings and Improvements	15,384
Cost Capitalized Subsequent to Acquisition	0
Gross Amount Carried at Close of Period, Land	2,002
Gross Amount Carried at Close of Period, Buildings and Improvements	15,384
Gross Amount Carried at Close of Period, Total	17,386
Accumulated Depreciation	2,605
Marlton Healthcare Facility
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	0
Initial Cost, Buildings and Improvements	57,154
Cost Capitalized Subsequent to Acquisition	5
Gross Amount Carried at Close of Period, Land	0
Gross Amount Carried at Close of Period, Buildings and Improvements	57,159
Gross Amount Carried at Close of Period, Total	57,159
Accumulated Depreciation	8,755
Grand Rapids Healthcare Facility
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	2,533
Initial Cost, Buildings and Improvements	39,487
Cost Capitalized Subsequent to Acquisition	1,034
Gross Amount Carried at Close of Period, Land	2,533
Gross Amount Carried at Close of Period, Buildings and Improvements	40,521
Gross Amount Carried at Close of Period, Total	43,054
Accumulated Depreciation	7,150
Corpus Christi Healthcare Facility
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	975
Initial Cost, Buildings and Improvements	4,963
Cost Capitalized Subsequent to Acquisition	716
Gross Amount Carried at Close of Period, Land	1,002
Gross Amount Carried at Close of Period, Buildings and Improvements	5,652
Gross Amount Carried at Close of Period, Total	6,654
Accumulated Depreciation	967
Aurora Healthcare Facility
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	973
Initial Cost, Buildings and Improvements	9,632
Cost Capitalized Subsequent to Acquisition	19
Gross Amount Carried at Close of Period, Land	973
Gross Amount Carried at Close of Period, Buildings and Improvements	9,651
Gross Amount Carried at Close of Period, Total	10,624
Accumulated Depreciation	1,507
Allen Healthcare Facility
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	857
Initial Cost, Buildings and Improvements	20,582
Cost Capitalized Subsequent to Acquisition	0
Gross Amount Carried at Close of Period, Land	857
Gross Amount Carried at Close of Period, Buildings and Improvements	20,582
Gross Amount Carried at Close of Period, Total	21,439
Accumulated Depreciation	3,209
Austin Healthcare Facility
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	1,368
Initial Cost, Buildings and Improvements	32,039
Cost Capitalized Subsequent to Acquisition	0
Gross Amount Carried at Close of Period, Land	1,368
Gross Amount Carried at Close of Period, Buildings and Improvements	32,039
Gross Amount Carried at Close of Period, Total	33,407
Accumulated Depreciation	4,996
Beaumont Healthcare Facility
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	946
Initial Cost, Buildings and Improvements	8,372
Cost Capitalized Subsequent to Acquisition	0
Gross Amount Carried at Close of Period, Land	946
Gross Amount Carried at Close of Period, Buildings and Improvements	8,372
Gross Amount Carried at Close of Period, Total	9,318
Accumulated Depreciation	1,313
San Antonio Healthcare Facility
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	1,813
Initial Cost, Buildings and Improvements	11,706
Cost Capitalized Subsequent to Acquisition	0
Gross Amount Carried at Close of Period, Land	1,813
Gross Amount Carried at Close of Period, Buildings and Improvements	11,706
Gross Amount Carried at Close of Period, Total	13,519
Accumulated Depreciation	1,759
Silverdale Healthcare Facility
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	1,530
Initial Cost, Buildings and Improvements	7,506
Cost Capitalized Subsequent to Acquisition	15
Gross Amount Carried at Close of Period, Land	1,530
Gross Amount Carried at Close of Period, Buildings and Improvements	7,521
Gross Amount Carried at Close of Period, Total	9,051
Accumulated Depreciation	1,237
Silverdale Healthcare Facility II
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	1,542
Initial Cost, Buildings and Improvements	4,981
Cost Capitalized Subsequent to Acquisition	0
Gross Amount Carried at Close of Period, Land	1,542
Gross Amount Carried at Close of Period, Buildings and Improvements	4,981
Gross Amount Carried at Close of Period, Total	6,523
Accumulated Depreciation	885
Saginaw Healthcare Facility
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	1,251
Initial Cost, Buildings and Improvements	15,878
Cost Capitalized Subsequent to Acquisition	235
Gross Amount Carried at Close of Period, Land	1,251
Gross Amount Carried at Close of Period, Buildings and Improvements	16,113
Gross Amount Carried at Close of Period, Total	17,364
Accumulated Depreciation	2,928
Carrollton Healthcare Facility
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	1,995
Initial Cost, Buildings and Improvements	5,870
Cost Capitalized Subsequent to Acquisition	39
Gross Amount Carried at Close of Period, Land	1,995
Gross Amount Carried at Close of Period, Buildings and Improvements	5,909
Gross Amount Carried at Close of Period, Total	7,904
Accumulated Depreciation	771
Katy Healthcare Facility
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	1,443
Initial Cost, Buildings and Improvements	12,114
Cost Capitalized Subsequent to Acquisition	0
Gross Amount Carried at Close of Period, Land	1,443
Gross Amount Carried at Close of Period, Buildings and Improvements	12,114
Gross Amount Carried at Close of Period, Total	13,557
Accumulated Depreciation	1,428
Indianola Healthcare Facility
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	330
Initial Cost, Buildings and Improvements	5,698
Cost Capitalized Subsequent to Acquisition	67
Gross Amount Carried at Close of Period, Land	330
Gross Amount Carried at Close of Period, Buildings and Improvements	5,765
Gross Amount Carried at Close of Period, Total	6,095
Accumulated Depreciation	669
Indianola Healthcare Facility II
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	709
Initial Cost, Buildings and Improvements	6,061
Cost Capitalized Subsequent to Acquisition	0
Gross Amount Carried at Close of Period, Land	709
Gross Amount Carried at Close of Period, Buildings and Improvements	6,061
Gross Amount Carried at Close of Period, Total	6,770
Accumulated Depreciation	733
Benton Healthcare Facility
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	0
Initial Cost, Buildings and Improvements	19,048
Cost Capitalized Subsequent to Acquisition	0
Gross Amount Carried at Close of Period, Land	0
Gross Amount Carried at Close of Period, Buildings and Improvements	19,048
Gross Amount Carried at Close of Period, Total	19,048
Accumulated Depreciation	2,177
Benton Healthcare Facility II
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	0
Initial Cost, Buildings and Improvements	1,647
Cost Capitalized Subsequent to Acquisition	0
Gross Amount Carried at Close of Period, Land	0
Gross Amount Carried at Close of Period, Buildings and Improvements	1,647
Gross Amount Carried at Close of Period, Total	1,647
Accumulated Depreciation	209
Bryant Healthcare Facility
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	930
Initial Cost, Buildings and Improvements	3,539
Cost Capitalized Subsequent to Acquisition	0
Gross Amount Carried at Close of Period, Land	930
Gross Amount Carried at Close of Period, Buildings and Improvements	3,539
Gross Amount Carried at Close of Period, Total	4,469
Accumulated Depreciation	446
Hot Springs Healthcare Facility
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	384
Initial Cost, Buildings and Improvements	2,077
Cost Capitalized Subsequent to Acquisition	0
Gross Amount Carried at Close of Period, Land	384
Gross Amount Carried at Close of Period, Buildings and Improvements	2,077
Gross Amount Carried at Close of Period, Total	2,461
Accumulated Depreciation	270
Clive Healthcare Facility
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	336
Initial Cost, Buildings and Improvements	22,332
Cost Capitalized Subsequent to Acquisition	158
Gross Amount Carried at Close of Period, Land	336
Gross Amount Carried at Close of Period, Buildings and Improvements	22,490
Gross Amount Carried at Close of Period, Total	22,826
Accumulated Depreciation	2,920
Valdosta Healthcare Facility
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	659
Initial Cost, Buildings and Improvements	5,626
Cost Capitalized Subsequent to Acquisition	0
Gross Amount Carried at Close of Period, Land	659
Gross Amount Carried at Close of Period, Buildings and Improvements	5,626
Gross Amount Carried at Close of Period, Total	6,285
Accumulated Depreciation	730
Valdosta Healthcare Facility II
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	471
Initial Cost, Buildings and Improvements	2,780
Cost Capitalized Subsequent to Acquisition	0
Gross Amount Carried at Close of Period, Land	471
Gross Amount Carried at Close of Period, Buildings and Improvements	2,780
Gross Amount Carried at Close of Period, Total	3,251
Accumulated Depreciation	366
Bryant Healthcare Facility II
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	647
Initial Cost, Buildings and Improvements	3,364
Cost Capitalized Subsequent to Acquisition	0
Gross Amount Carried at Close of Period, Land	647
Gross Amount Carried at Close of Period, Buildings and Improvements	3,364
Gross Amount Carried at Close of Period, Total	4,011
Accumulated Depreciation	323
Laredo Healthcare Facility
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	0
Initial Cost, Buildings and Improvements	12,137
Cost Capitalized Subsequent to Acquisition	0
Gross Amount Carried at Close of Period, Land	0
Gross Amount Carried at Close of Period, Buildings and Improvements	12,137
Gross Amount Carried at Close of Period, Total	12,137
Accumulated Depreciation	1,083
Laredo Healthcare Facility II
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	0
Initial Cost, Buildings and Improvements	23,677
Cost Capitalized Subsequent to Acquisition	83
Gross Amount Carried at Close of Period, Land	0
Gross Amount Carried at Close of Period, Buildings and Improvements	23,760
Gross Amount Carried at Close of Period, Total	23,760
Accumulated Depreciation	2,157
Poplar Bluff Healthcare Facility
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	0
Initial Cost, Buildings and Improvements	13,515
Cost Capitalized Subsequent to Acquisition	0
Gross Amount Carried at Close of Period, Land	0
Gross Amount Carried at Close of Period, Buildings and Improvements	13,515
Gross Amount Carried at Close of Period, Total	13,515
Accumulated Depreciation	1,211
Tucson Healthcare Facility
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	0
Initial Cost, Buildings and Improvements	5,998
Cost Capitalized Subsequent to Acquisition	0
Gross Amount Carried at Close of Period, Land	0
Gross Amount Carried at Close of Period, Buildings and Improvements	5,998
Gross Amount Carried at Close of Period, Total	5,998
Accumulated Depreciation	540
Akron Healthcare Facility
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	3,503
Initial Cost, Buildings and Improvements	38,512
Cost Capitalized Subsequent to Acquisition	0
Gross Amount Carried at Close of Period, Land	3,503
Gross Amount Carried at Close of Period, Buildings and Improvements	38,512
Gross Amount Carried at Close of Period, Total	42,015
Accumulated Depreciation	3,293
Akron Healthcare Facility II
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	1,085
Initial Cost, Buildings and Improvements	10,277
Cost Capitalized Subsequent to Acquisition	0
Gross Amount Carried at Close of Period, Land	1,085
Gross Amount Carried at Close of Period, Buildings and Improvements	10,277
Gross Amount Carried at Close of Period, Total	11,362
Accumulated Depreciation	1,056
Akron Healthcare Facility III
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	2,206
Initial Cost, Buildings and Improvements	26,044
Cost Capitalized Subsequent to Acquisition	0
Gross Amount Carried at Close of Period, Land	2,206
Gross Amount Carried at Close of Period, Buildings and Improvements	26,044
Gross Amount Carried at Close of Period, Total	28,250
Accumulated Depreciation	2,152
Alexandria Healthcare Facility
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	0
Initial Cost, Buildings and Improvements	5,076
Cost Capitalized Subsequent to Acquisition	0
Gross Amount Carried at Close of Period, Land	0
Gross Amount Carried at Close of Period, Buildings and Improvements	5,076
Gross Amount Carried at Close of Period, Total	5,076
Accumulated Depreciation	419
Appleton Healthcare Facility
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	414
Initial Cost, Buildings and Improvements	1,900
Cost Capitalized Subsequent to Acquisition	0
Gross Amount Carried at Close of Period, Land	414
Gross Amount Carried at Close of Period, Buildings and Improvements	1,900
Gross Amount Carried at Close of Period, Total	2,314
Accumulated Depreciation	209
Austin Healthcare Facility II
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	3,229
Initial Cost, Buildings and Improvements	7,534
Cost Capitalized Subsequent to Acquisition	(2,807)
Gross Amount Carried at Close of Period, Land	2,195
Gross Amount Carried at Close of Period, Buildings and Improvements	5,761
Gross Amount Carried at Close of Period, Total	7,956
Accumulated Depreciation	489
Bellevue Healthcare Facility
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	567
Initial Cost, Buildings and Improvements	1,269
Cost Capitalized Subsequent to Acquisition	0
Gross Amount Carried at Close of Period, Land	567
Gross Amount Carried at Close of Period, Buildings and Improvements	1,269
Gross Amount Carried at Close of Period, Total	1,836
Accumulated Depreciation	145
Bonita Springs Healthcare Facility
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	1,199
Initial Cost, Buildings and Improvements	4,373
Cost Capitalized Subsequent to Acquisition	0
Gross Amount Carried at Close of Period, Land	1,199
Gross Amount Carried at Close of Period, Buildings and Improvements	4,373
Gross Amount Carried at Close of Period, Total	5,572
Accumulated Depreciation	371
Bridgeton Healthcare Facility
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	0
Initial Cost, Buildings and Improvements	39,740
Cost Capitalized Subsequent to Acquisition	0
Gross Amount Carried at Close of Period, Land	0
Gross Amount Carried at Close of Period, Buildings and Improvements	39,740
Gross Amount Carried at Close of Period, Total	39,740
Accumulated Depreciation	3,270
Covington Healthcare Facility
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	2,238
Initial Cost, Buildings and Improvements	16,635
Cost Capitalized Subsequent to Acquisition	0
Gross Amount Carried at Close of Period, Land	2,238
Gross Amount Carried at Close of Period, Buildings and Improvements	16,635
Gross Amount Carried at Close of Period, Total	18,873
Accumulated Depreciation	1,362
Crestview Healthcare Facility
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	400
Initial Cost, Buildings and Improvements	1,536
Cost Capitalized Subsequent to Acquisition	0
Gross Amount Carried at Close of Period, Land	400
Gross Amount Carried at Close of Period, Buildings and Improvements	1,536
Gross Amount Carried at Close of Period, Total	1,936
Accumulated Depreciation	146
Dallas Healthcare Facility
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	6,072
Initial Cost, Buildings and Improvements	27,457
Cost Capitalized Subsequent to Acquisition	0
Gross Amount Carried at Close of Period, Land	6,072
Gross Amount Carried at Close of Period, Buildings and Improvements	27,457
Gross Amount Carried at Close of Period, Total	33,529
Accumulated Depreciation	2,211
De Pere Healthcare Facility
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	615
Initial Cost, Buildings and Improvements	1,596
Cost Capitalized Subsequent to Acquisition	0
Gross Amount Carried at Close of Period, Land	615
Gross Amount Carried at Close of Period, Buildings and Improvements	1,596
Gross Amount Carried at Close of Period, Total	2,211
Accumulated Depreciation	176
Denver Healthcare Facility
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	3,586
Initial Cost, Buildings and Improvements	32,363
Cost Capitalized Subsequent to Acquisition	0
Gross Amount Carried at Close of Period, Land	3,586
Gross Amount Carried at Close of Period, Buildings and Improvements	32,363
Gross Amount Carried at Close of Period, Total	35,949
Accumulated Depreciation	2,688
El Segundo Healthcare Facility
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	2,659
Initial Cost, Buildings and Improvements	9,016
Cost Capitalized Subsequent to Acquisition	0
Gross Amount Carried at Close of Period, Land	2,659
Gross Amount Carried at Close of Period, Buildings and Improvements	9,016
Gross Amount Carried at Close of Period, Total	11,675
Accumulated Depreciation	748
Fairlea Healthcare Facility
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	139
Initial Cost, Buildings and Improvements	1,910
Cost Capitalized Subsequent to Acquisition	0
Gross Amount Carried at Close of Period, Land	139
Gross Amount Carried at Close of Period, Buildings and Improvements	1,910
Gross Amount Carried at Close of Period, Total	2,049
Accumulated Depreciation	167
Fayetteville Healthcare Facility
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	485
Initial Cost, Buildings and Improvements	24,855
Cost Capitalized Subsequent to Acquisition	0
Gross Amount Carried at Close of Period, Land	485
Gross Amount Carried at Close of Period, Buildings and Improvements	24,855
Gross Amount Carried at Close of Period, Total	25,340
Accumulated Depreciation	2,035
Fort Myers Healthcare Facility
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	2,153
Initial Cost, Buildings and Improvements	2,387
Cost Capitalized Subsequent to Acquisition	0
Gross Amount Carried at Close of Period, Land	2,153
Gross Amount Carried at Close of Period, Buildings and Improvements	2,387
Gross Amount Carried at Close of Period, Total	4,540
Accumulated Depreciation	246
Fort Myers Healthcare Facility II
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	3,557
Initial Cost, Buildings and Improvements	11,064
Cost Capitalized Subsequent to Acquisition	0
Gross Amount Carried at Close of Period, Land	3,557
Gross Amount Carried at Close of Period, Buildings and Improvements	11,064
Gross Amount Carried at Close of Period, Total	14,621
Accumulated Depreciation	1,063
Fort Walton Beach Healthcare Facility
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	385
Initial Cost, Buildings and Improvements	3,182
Cost Capitalized Subsequent to Acquisition	0
Gross Amount Carried at Close of Period, Land	385
Gross Amount Carried at Close of Period, Buildings and Improvements	3,182
Gross Amount Carried at Close of Period, Total	3,567
Accumulated Depreciation	277
Frankfort Healthcare Facility
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	342
Initial Cost, Buildings and Improvements	950
Cost Capitalized Subsequent to Acquisition	0
Gross Amount Carried at Close of Period, Land	342
Gross Amount Carried at Close of Period, Buildings and Improvements	950
Gross Amount Carried at Close of Period, Total	1,292
Accumulated Depreciation	93
Frisco Healthcare Facility
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	0
Initial Cost, Buildings and Improvements	22,114
Cost Capitalized Subsequent to Acquisition	4,653
Gross Amount Carried at Close of Period, Land	0
Gross Amount Carried at Close of Period, Buildings and Improvements	26,767
Gross Amount Carried at Close of Period, Total	26,767
Accumulated Depreciation	2,926
Goshen Healthcare Facility
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	383
Initial Cost, Buildings and Improvements	5,355
Cost Capitalized Subsequent to Acquisition	0
Gross Amount Carried at Close of Period, Land	383
Gross Amount Carried at Close of Period, Buildings and Improvements	5,355
Gross Amount Carried at Close of Period, Total	5,738
Accumulated Depreciation	484
Hammond Healthcare Facility
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	2,693
Initial Cost, Buildings and Improvements	23,750
Cost Capitalized Subsequent to Acquisition	0
Gross Amount Carried at Close of Period, Land	2,693
Gross Amount Carried at Close of Period, Buildings and Improvements	23,750
Gross Amount Carried at Close of Period, Total	26,443
Accumulated Depreciation	2,019
Hammond Healthcare Facility II
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	950
Initial Cost, Buildings and Improvements	12,147
Cost Capitalized Subsequent to Acquisition	0
Gross Amount Carried at Close of Period, Land	950
Gross Amount Carried at Close of Period, Buildings and Improvements	12,147
Gross Amount Carried at Close of Period, Total	13,097
Accumulated Depreciation	1,021
Harlingen Healthcare Facility
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	0
Initial Cost, Buildings and Improvements	10,628
Cost Capitalized Subsequent to Acquisition	(10,378)
Gross Amount Carried at Close of Period, Land	0
Gross Amount Carried at Close of Period, Buildings and Improvements	250
Gross Amount Carried at Close of Period, Total	250
Accumulated Depreciation	0
Henderson Healthcare Facility
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	839
Initial Cost, Buildings and Improvements	2,390
Cost Capitalized Subsequent to Acquisition	0
Gross Amount Carried at Close of Period, Land	839
Gross Amount Carried at Close of Period, Buildings and Improvements	2,390
Gross Amount Carried at Close of Period, Total	3,229
Accumulated Depreciation	217
Houston Healthcare Facility III
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	752
Initial Cost, Buildings and Improvements	5,832
Cost Capitalized Subsequent to Acquisition	0
Gross Amount Carried at Close of Period, Land	752
Gross Amount Carried at Close of Period, Buildings and Improvements	5,832
Gross Amount Carried at Close of Period, Total	6,584
Accumulated Depreciation	481
Howard Healthcare Facility
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	529
Initial Cost, Buildings and Improvements	1,818
Cost Capitalized Subsequent to Acquisition	0
Gross Amount Carried at Close of Period, Land	529
Gross Amount Carried at Close of Period, Buildings and Improvements	1,818
Gross Amount Carried at Close of Period, Total	2,347
Accumulated Depreciation	202
Jacksonville Healthcare Facility
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	1,233
Initial Cost, Buildings and Improvements	6,173
Cost Capitalized Subsequent to Acquisition	0
Gross Amount Carried at Close of Period, Land	1,233
Gross Amount Carried at Close of Period, Buildings and Improvements	6,173
Gross Amount Carried at Close of Period, Total	7,406
Accumulated Depreciation	540
Lafayette Healthcare Facility
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	4,819
Initial Cost, Buildings and Improvements	35,424
Cost Capitalized Subsequent to Acquisition	0
Gross Amount Carried at Close of Period, Land	4,819
Gross Amount Carried at Close of Period, Buildings and Improvements	35,424
Gross Amount Carried at Close of Period, Total	40,243
Accumulated Depreciation	2,947
Lakewood Ranch Healthcare Facility
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	636
Initial Cost, Buildings and Improvements	1,784
Cost Capitalized Subsequent to Acquisition	0
Gross Amount Carried at Close of Period, Land	636
Gross Amount Carried at Close of Period, Buildings and Improvements	1,784
Gross Amount Carried at Close of Period, Total	2,420
Accumulated Depreciation	198
Las Vegas Healthcare Facility II
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	651
Initial Cost, Buildings and Improvements	5,323
Cost Capitalized Subsequent to Acquisition	0
Gross Amount Carried at Close of Period, Land	651
Gross Amount Carried at Close of Period, Buildings and Improvements	5,323
Gross Amount Carried at Close of Period, Total	5,974
Accumulated Depreciation	460
Lehigh Acres Healthcare Facility
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	441
Initial Cost, Buildings and Improvements	2,956
Cost Capitalized Subsequent to Acquisition	0
Gross Amount Carried at Close of Period, Land	441
Gross Amount Carried at Close of Period, Buildings and Improvements	2,956
Gross Amount Carried at Close of Period, Total	3,397
Accumulated Depreciation	268
Lubbock Healthcare Facility
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	5,210
Initial Cost, Buildings and Improvements	39,939
Cost Capitalized Subsequent to Acquisition	0
Gross Amount Carried at Close of Period, Land	5,210
Gross Amount Carried at Close of Period, Buildings and Improvements	39,939
Gross Amount Carried at Close of Period, Total	45,149
Accumulated Depreciation	3,264
Manitowoc Healthcare Facility
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	257
Initial Cost, Buildings and Improvements	1,733
Cost Capitalized Subsequent to Acquisition	0
Gross Amount Carried at Close of Period, Land	257
Gross Amount Carried at Close of Period, Buildings and Improvements	1,733
Gross Amount Carried at Close of Period, Total	1,990
Accumulated Depreciation	185
Manitowoc Healthcare Facility II
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	250
Initial Cost, Buildings and Improvements	11,231
Cost Capitalized Subsequent to Acquisition	0
Gross Amount Carried at Close of Period, Land	250
Gross Amount Carried at Close of Period, Buildings and Improvements	11,231
Gross Amount Carried at Close of Period, Total	11,481
Accumulated Depreciation	1,012
Marinette Healthcare Facility
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	208
Initial Cost, Buildings and Improvements	1,002
Cost Capitalized Subsequent to Acquisition	0
Gross Amount Carried at Close of Period, Land	208
Gross Amount Carried at Close of Period, Buildings and Improvements	1,002
Gross Amount Carried at Close of Period, Total	1,210
Accumulated Depreciation	110
New Bedford Healthcare Facility
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	2,464
Initial Cost, Buildings and Improvements	26,297
Cost Capitalized Subsequent to Acquisition	(27,522)
Gross Amount Carried at Close of Period, Land	115
Gross Amount Carried at Close of Period, Buildings and Improvements	1,124
Gross Amount Carried at Close of Period, Total	1,239
Accumulated Depreciation	0
New Braunfels Healthcare Facility
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	2,568
Initial Cost, Buildings and Improvements	11,386
Cost Capitalized Subsequent to Acquisition	0
Gross Amount Carried at Close of Period, Land	2,568
Gross Amount Carried at Close of Period, Buildings and Improvements	11,386
Gross Amount Carried at Close of Period, Total	13,954
Accumulated Depreciation	945
North Smithfield Healthcare Facility
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	1,309
Initial Cost, Buildings and Improvements	14,024
Cost Capitalized Subsequent to Acquisition	0
Gross Amount Carried at Close of Period, Land	1,309
Gross Amount Carried at Close of Period, Buildings and Improvements	14,024
Gross Amount Carried at Close of Period, Total	15,333
Accumulated Depreciation	1,229
Oklahoma City Healthcare Facility IX
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	1,316
Initial Cost, Buildings and Improvements	9,822
Cost Capitalized Subsequent to Acquisition	0
Gross Amount Carried at Close of Period, Land	1,316
Gross Amount Carried at Close of Period, Buildings and Improvements	9,822
Gross Amount Carried at Close of Period, Total	11,138
Accumulated Depreciation	930
Oshkosh Healthcare Facility
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	414
Initial Cost, Buildings and Improvements	2,043
Cost Capitalized Subsequent to Acquisition	0
Gross Amount Carried at Close of Period, Land	413
Gross Amount Carried at Close of Period, Buildings and Improvements	2,044
Gross Amount Carried at Close of Period, Total	2,457
Accumulated Depreciation	207
Palm Desert Healthcare Facility
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	582
Initial Cost, Buildings and Improvements	5,927
Cost Capitalized Subsequent to Acquisition	0
Gross Amount Carried at Close of Period, Land	582
Gross Amount Carried at Close of Period, Buildings and Improvements	5,927
Gross Amount Carried at Close of Period, Total	6,509
Accumulated Depreciation	548
Rancho Mirage Healthcare Facility II
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	2,286
Initial Cost, Buildings and Improvements	5,481
Cost Capitalized Subsequent to Acquisition	0
Gross Amount Carried at Close of Period, Land	2,286
Gross Amount Carried at Close of Period, Buildings and Improvements	5,481
Gross Amount Carried at Close of Period, Total	7,767
Accumulated Depreciation	497
San Antonio Healthcare Facility III
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	1,824
Initial Cost, Buildings and Improvements	22,809
Cost Capitalized Subsequent to Acquisition	0
Gross Amount Carried at Close of Period, Land	1,824
Gross Amount Carried at Close of Period, Buildings and Improvements	22,809
Gross Amount Carried at Close of Period, Total	24,633
Accumulated Depreciation	1,854
San Antonio Healthcare Facility IV
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	0
Initial Cost, Buildings and Improvements	31,694
Cost Capitalized Subsequent to Acquisition	0
Gross Amount Carried at Close of Period, Land	0
Gross Amount Carried at Close of Period, Buildings and Improvements	31,694
Gross Amount Carried at Close of Period, Total	31,694
Accumulated Depreciation	2,576
San Antonio Healthcare Facility V
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	3,273
Initial Cost, Buildings and Improvements	19,697
Cost Capitalized Subsequent to Acquisition	1,023
Gross Amount Carried at Close of Period, Land	3,273
Gross Amount Carried at Close of Period, Buildings and Improvements	20,720
Gross Amount Carried at Close of Period, Total	23,993
Accumulated Depreciation	1,849
Santa Rosa Beach Healthcare Facility
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	741
Initial Cost, Buildings and Improvements	3,049
Cost Capitalized Subsequent to Acquisition	0
Gross Amount Carried at Close of Period, Land	741
Gross Amount Carried at Close of Period, Buildings and Improvements	3,049
Gross Amount Carried at Close of Period, Total	3,790
Accumulated Depreciation	249
Savannah Healthcare Facility
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	2,300
Initial Cost, Buildings and Improvements	20,186
Cost Capitalized Subsequent to Acquisition	0
Gross Amount Carried at Close of Period, Land	2,300
Gross Amount Carried at Close of Period, Buildings and Improvements	20,186
Gross Amount Carried at Close of Period, Total	22,486
Accumulated Depreciation	1,653
Sturgeon Bay Healthcare Facility
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	248
Initial Cost, Buildings and Improvements	700
Cost Capitalized Subsequent to Acquisition	0
Gross Amount Carried at Close of Period, Land	248
Gross Amount Carried at Close of Period, Buildings and Improvements	700
Gross Amount Carried at Close of Period, Total	948
Accumulated Depreciation	84
Victoria Healthcare Facility
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	328
Initial Cost, Buildings and Improvements	12,908
Cost Capitalized Subsequent to Acquisition	0
Gross Amount Carried at Close of Period, Land	328
Gross Amount Carried at Close of Period, Buildings and Improvements	12,908
Gross Amount Carried at Close of Period, Total	13,236
Accumulated Depreciation	1,078
Victoria Healthcare Facility II
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	446
Initial Cost, Buildings and Improvements	12,986
Cost Capitalized Subsequent to Acquisition	0
Gross Amount Carried at Close of Period, Land	446
Gross Amount Carried at Close of Period, Buildings and Improvements	12,986
Gross Amount Carried at Close of Period, Total	13,432
Accumulated Depreciation	1,074
Webster Healthcare Facility II
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	7,371
Initial Cost, Buildings and Improvements	243,983
Cost Capitalized Subsequent to Acquisition	4,584
Gross Amount Carried at Close of Period, Land	7,371
Gross Amount Carried at Close of Period, Buildings and Improvements	248,567
Gross Amount Carried at Close of Period, Total	255,938
Accumulated Depreciation	19,913
Wilkes-Barre Healthcare Facility
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	821
Initial Cost, Buildings and Improvements	4,139
Cost Capitalized Subsequent to Acquisition	0
Gross Amount Carried at Close of Period, Land	821
Gross Amount Carried at Close of Period, Buildings and Improvements	4,139
Gross Amount Carried at Close of Period, Total	4,960
Accumulated Depreciation	388
Yucca Valley Healthcare Facility
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	901
Initial Cost, Buildings and Improvements	4,788
Cost Capitalized Subsequent to Acquisition	0
Gross Amount Carried at Close of Period, Land	901
Gross Amount Carried at Close of Period, Buildings and Improvements	4,788
Gross Amount Carried at Close of Period, Total	5,689
Accumulated Depreciation	465
Tucson Healthcare Facility II
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	0
Initial Cost, Buildings and Improvements	0
Cost Capitalized Subsequent to Acquisition	25,324
Gross Amount Carried at Close of Period, Land	0
Gross Amount Carried at Close of Period, Buildings and Improvements	25,324
Gross Amount Carried at Close of Period, Total	25,324
Accumulated Depreciation	1,102
Tucson Healthcare Facility III
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	1,763
Initial Cost, Buildings and Improvements	0
Cost Capitalized Subsequent to Acquisition	8,177
Gross Amount Carried at Close of Period, Land	1,763
Gross Amount Carried at Close of Period, Buildings and Improvements	8,177
Gross Amount Carried at Close of Period, Total	9,940
Accumulated Depreciation	668
Grimes Healthcare Facility
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	831
Initial Cost, Buildings and Improvements	3,690
Cost Capitalized Subsequent to Acquisition	0
Gross Amount Carried at Close of Period, Land	831
Gross Amount Carried at Close of Period, Buildings and Improvements	3,690
Gross Amount Carried at Close of Period, Total	4,521
Accumulated Depreciation	309
Tampa Healthcare Facility
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	0
Initial Cost, Buildings and Improvements	10,297
Cost Capitalized Subsequent to Acquisition	0
Gross Amount Carried at Close of Period, Land	0
Gross Amount Carried at Close of Period, Buildings and Improvements	10,297
Gross Amount Carried at Close of Period, Total	10,297
Accumulated Depreciation	794
Tucson Healthcare Facility IV
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	0
Initial Cost, Buildings and Improvements	58
Cost Capitalized Subsequent to Acquisition	17,445
Gross Amount Carried at Close of Period, Land	0
Gross Amount Carried at Close of Period, Buildings and Improvements	17,503
Gross Amount Carried at Close of Period, Total	17,503
Accumulated Depreciation	558
Greenwood Healthcare Facility
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	1,603
Initial Cost, Buildings and Improvements	22,588
Cost Capitalized Subsequent to Acquisition	0
Gross Amount Carried at Close of Period, Land	1,603
Gross Amount Carried at Close of Period, Buildings and Improvements	22,588
Gross Amount Carried at Close of Period, Total	24,191
Accumulated Depreciation	1,004
Clive Healthcare Facility II
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	1,555
Initial Cost, Buildings and Improvements	17,898
Cost Capitalized Subsequent to Acquisition	0
Gross Amount Carried at Close of Period, Land	1,555
Gross Amount Carried at Close of Period, Buildings and Improvements	17,898
Gross Amount Carried at Close of Period, Total	19,453
Accumulated Depreciation	547
Clive Healthcare Facility III
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	843
Initial Cost, Buildings and Improvements	12,299
Cost Capitalized Subsequent to Acquisition	0
Gross Amount Carried at Close of Period, Land	843
Gross Amount Carried at Close of Period, Buildings and Improvements	12,299
Gross Amount Carried at Close of Period, Total	13,142
Accumulated Depreciation	322
Clive Healthcare Facility IV
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	720
Initial Cost, Buildings and Improvements	7,863
Cost Capitalized Subsequent to Acquisition	0
Gross Amount Carried at Close of Period, Land	720
Gross Amount Carried at Close of Period, Buildings and Improvements	7,863
Gross Amount Carried at Close of Period, Total	8,583
Accumulated Depreciation	255
Clive Undeveloped Land
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	1,061
Initial Cost, Buildings and Improvements	0
Cost Capitalized Subsequent to Acquisition	0
Gross Amount Carried at Close of Period, Land	1,061
Gross Amount Carried at Close of Period, Buildings and Improvements	0
Gross Amount Carried at Close of Period, Total	1,061
Accumulated Depreciation	0
Clive Undeveloped Land II
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	460
Initial Cost, Buildings and Improvements	0
Cost Capitalized Subsequent to Acquisition	0
Gross Amount Carried at Close of Period, Land	460
Gross Amount Carried at Close of Period, Buildings and Improvements	0
Gross Amount Carried at Close of Period, Total	460
Accumulated Depreciation	0
Yukon Healthcare Facility
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	1,288
Initial Cost, Buildings and Improvements	16,779
Cost Capitalized Subsequent to Acquisition	0
Gross Amount Carried at Close of Period, Land	1,288
Gross Amount Carried at Close of Period, Buildings and Improvements	16,779
Gross Amount Carried at Close of Period, Total	18,067
Accumulated Depreciation	369
Pleasant Hills Healthcare Facility
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	922
Initial Cost, Buildings and Improvements	12,905
Cost Capitalized Subsequent to Acquisition	0
Gross Amount Carried at Close of Period, Land	922
Gross Amount Carried at Close of Period, Buildings and Improvements	12,905
Gross Amount Carried at Close of Period, Total	13,827
Accumulated Depreciation	270
Prosser Healthcare Facility I
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	282
Initial Cost, Buildings and Improvements	1,933
Cost Capitalized Subsequent to Acquisition	0
Gross Amount Carried at Close of Period, Land	282
Gross Amount Carried at Close of Period, Buildings and Improvements	1,933
Gross Amount Carried at Close of Period, Total	2,215
Accumulated Depreciation	40
Prosser Healthcare Facility II
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	95
Initial Cost, Buildings and Improvements	3,374
Cost Capitalized Subsequent to Acquisition	0
Gross Amount Carried at Close of Period, Land	95
Gross Amount Carried at Close of Period, Buildings and Improvements	3,374
Gross Amount Carried at Close of Period, Total	3,469
Accumulated Depreciation	68
Prosser Healthcare Facility III
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	59
Initial Cost, Buildings and Improvements	2,070
Cost Capitalized Subsequent to Acquisition	0
Gross Amount Carried at Close of Period, Land	59
Gross Amount Carried at Close of Period, Buildings and Improvements	2,070
Gross Amount Carried at Close of Period, Total	2,129
Accumulated Depreciation	41
Tampa Healthcare Facility II
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	0
Initial Cost, Buildings and Improvements	47,042
Cost Capitalized Subsequent to Acquisition	0
Gross Amount Carried at Close of Period, Land	0
Gross Amount Carried at Close of Period, Buildings and Improvements	47,042
Gross Amount Carried at Close of Period, Total	47,042
Accumulated Depreciation	572
Escondido Healthcare Facility
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Initial Cost, Land	0
Initial Cost, Buildings and Improvements	57,675
Cost Capitalized Subsequent to Acquisition	0
Gross Amount Carried at Close of Period, Land	0
Gross Amount Carried at Close of Period, Buildings and Improvements	57,675
Gross Amount Carried at Close of Period, Total	57,675
Accumulated Depreciation	$ 680

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SCHEDULE III - REAL ESTATE ASSETS AND ACCUMULATED DEPRECIATION (SCHEDULE OF REAL ESTATE ASSETS AND ACCUMULATED DEPRECIATION - NARRATIVE) (Details)	12 Months Ended
	Dec. 31, 2022 USD ($) property	Dec. 31, 2021 USD ($)
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Number of properties collateralized under line of credit facility | property	124
Total credit facility, principal amount outstanding	$ 583,000,000	$ 500,000,000
Aggregated cost for federal income tax purposes	$ 2,284,522,000
Minimum
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Life used for depreciation	15 years
Maximum
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items]
Life used for depreciation	40 years

XML

SCHEDULE III - REAL ESTATE ASSETS AND ACCUMULATED DEPRECIATION (SCHEDULE OF REAL ESTATE ASSETS AND ACCUMULATED DEPRECIATION - ROLLFORWARD) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate [Roll Forward]
Balance at beginning of year	$ 2,015,330	$ 2,890,958	$ 2,896,766
Acquisitions	144,424	66,890	14,876
Improvements	4,735	23,288	31,260
Other adjustments	182	978	0
Impairment	(53,230)	(29,673)	0
Dispositions	(22,241)	(936,594)	(51,944)
Other adjustments	0	(517)	0
Balance at end of year	2,089,200	2,015,330	2,890,958
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate, Accumulated Depreciation [Roll Forward]
Balance at beginning of year	(165,784)	(197,134)	(128,304)
Depreciation	(51,584)	(56,999)	(69,623)
Impairment	8,250	2,507	0
Dispositions	0	85,325	793
Other adjustments	0	517	0
Balance at end of year	$ (209,118)	$ (165,784)	$ (197,134)